Flashcards in Week 2- Market Forces of Supply and Demand Deck (15):
There's no shortage of scarce resources?
Yes, since prices adjust to eliminate shortage.
In competitive market, buyers and sellers...
Are price takers.
Buy from someone else.
In market economy, supply and demand
Determines the price.
Supply and demand runs the economy. They can be used to
Predict the impact of the economy of different events.
Market clearing price aka
Quantity demanded of a good-
Is the amount that buyers are willing to purchase.
Competitive market have so many sellers that-
Each has a negligible impact on the price of the product.
Relationship between price and quantity demanded.
Shows quantity supplied at a range of different prices.
Highest form of competition.
Demand of a good determined by-
Those who buy the goods.
In competitive market, each sellers has limited control over the price since-
Other sellers are offering similar products.
Line that relates prices of a good and quantity supplied of that goods.