ECN 104 Chapter Notes - Chapter 4: Perfect Competition, Economic Equilibrium, Takers

• School: Ryerson University
• Department: Economics
• Course: ECN 104
• Professor: Tsogbadral Galaabaatar

Document Summary

Chapter 4: the market forces of supply and demand. Market: a group of buyers and sellers of a particular good or service. Competitive market: a market in which there are many buyers and sellers, each has a negligible impact on the market price. Normal good: a good for which, other things equal an increase in income leads to increase in demand. Inferior good: a good for which, other things equal an increase in income leads to a decrease in demand. Substitutes: two goods for which an increase in one good results in an increase in demand for the other. Complements: two goods for which an increase in the price of one leads to the decrease in demand for the other. Quantity demanded: the amount of a good that buyers are willing to purchase. Demand schedule: a table that shows the relationship between the price of a good and the quantity demanded.