Demand and Supply

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demand and supply
market: a group of buyers and sellers of a particular product
competitive market: one with many buyers and sellers, each has a negligible
effect on price

perfectly competitive market: goods sold in a market are all identical; buyers and
sellers so numerous that no one can affect the market price=each is a price taker
(price is given to them, doesn’t influence the market price)
we assume markets are perfectly competitive.

demand:
quantity demanded (Qd): of any goods is the amount of the good that buyers
are willing and able to purchase

amount you’re buying depends on its own price (inverse relationship)

if the price of a good increases→decrease the quantity demanded

if the price of a good decreases→increase the quantity demanded

law of demand: the claim that the quantity demanded of a good falls when
the price of the good rises, other things equal

demand schedule: a table that. shows the relationship between the price of a
good and the quantity demanded

price is y

quantity is x

quantity demanded is a single point on the curve

demand is the slope of the demand schedule curve

quantity market demand:

added up all the quantities demanded from each individual at each price



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