Management MGT 100 Lecture Notes - Lecture 1: Economic Equilibrium, Demand Curve, Perfect Competition

• School: WUSTL
• Department: Management
• Course: Management MGT 100
• Professor: Kiousis Konstantina

Document Summary

Market: a group of buyers and sellers of a particular good or service. The buyers as a group determine the demand for the product, and the sellers as a group determine the supply of the product. Competitive market: a market in which there are many buyers and many sellers so that each has a negligible impact on the market price. A perfectly competitive market offers the same goods. The buyers and sellers are so numerous that no single buyer or seller has any influence over the market price (i. e. price takers) A monopoly is a seller who sets the price for a good in the market. Quantity demanded: the amount of a good that buyers are willing and able to purchase. The law of demand: the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises.