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Chapter Demand 4 and Supply

Chapter CHECKLIST. 1. Distinguish between quantity demanded and Chapter Demand and explain what determines 4. Demand Demand . and Supply 2. Distinguish between quantity supplied and Supply and explain what determines Supply . 3. Explain how Demand and Supply determine price and quantity in a market, and explain the effects of changes in Demand and Supply . Copyright 2002 Addison Wesley LECTURE TOPICS COMPETITIVE MARKETS. < Demand A market is any arrangement that bring buyers and sellers together. < Supply <Market Equilibrium 1. COMPETITIVE MARKETS Demand . In this Chapter , we study a competitive market that has so Quantity demanded many buyers and so many sellers that no individual buyer The amount of a good, service, or resource that people or seller can influence the price. are willing and able to buy during a specified period at a specified price. The quantity demanded is an amount per unit of time. For example, the amount per day or per month.

Demand curve A graph of the relationship between the quantity demanded of a good and its price when all other influences on buying plans remain the same. 4.1 DEMAND 4.1 DEMAND <Individual Demand and Market Demand Market demand The sum of the demands of all the buyers in a market. The market demand curve is the horizontal sum of the

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