ECO 1104 Study Guide - Frozen Yogurt, Economic Equilibrium, Cable Television

• School: University of Ottawa
• Department: Economics
• Course: ECO 1104
• Professor: A L L

Document Summary

Supply & demand illustration of how prices determined and how prices allocate economy"s scarce resources. Cold snap hits florida, oj price rises in canada ; when warm in quebec in summer, caribbean hotel rooms drop ; middle east conflict, price of gas in canada rises and thus prices of suvs fall. Market = grp of buyers and sellers of a specific good / service ; buyers of the group determine demand, sellers of the group determine supply. Competition most markets highly competitivebuyer knows there are several seller options :: competitive market = market w/h has many buyers & sellers such that each has a negligible impact on the market price. Wheat market-thousands of farmers who sell wheat and millions of consumers who use wheat/wheat productsperfectly competitive each takes price given. Some markets only have 1 seller, and seller sets price called a monopoly cable tv company for example.