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what is supply and demand?
- the forces that make market economies work, and the behavior of people as they interact with one another in competitive markets. TERM 2
what is a market?
DEFINITION 2
- a group of buyers and sellers of a particular good or service. TERM 3
what control of the market do buyers have?
DEFINITION 3
- they determine the demand for a product or service. TERM 4
what control of the market do sellers have?
DEFINITION 4
- they determine the supply for a product or service. TERM 5
what are the two main forms of markets?
DEFINITION 5 highly organized markets - markets for many agricultural commodities. less organized markets - market for things like ice cream in a particular town.
what are the atributes of a competitive
market?
many buyers and sellers buyers and sellers have a negligible impact prices are determined by buyers and sellers as they interact in the marketplace TERM 7
what are the attributes of perfectly
competitive markets?
DEFINITION 7 all goods are offered for the same price no single buyer or seller has influence buyers can buy all they want sellers can sell all they want TERM 8
monopoly
DEFINITION 8 only seller in the market sets the price TERM 9
quantity demanded
DEFINITION 9
- amount of a good that buyers are willing and able to purchase TERM 10
law of demand
DEFINITION 10 when the price of a good rises, the quantity demanded of the good falls when the price falls, the quantitydemanded rises
