ch 4 terms

Question 1

define market

Answer 1

group of buyers and sellers of one thing

Question 2

define competition

Answer 2

other sellers and their loyal buyers vs ys

Question 3

define competitive market

Answer 3

so many buyers than no sellers impact market

Question 4

define monopoly

Answer 4

one firm controls whole market, can have whatever prices they want

Question 5

monopsony definition

Answer 5

many sellers, only one big buyer (coffee bean suppliers and Starbucks)
they force prices fown

Question 6

define demand curve

Answer 6

how price impacts quantity demanded

Question 7

define quantity demanded

Answer 7

amount of smt that buyers are willing and able to buy

Question 8

what is the law of demand

Answer 8

when price fall, demand rises and vice versa

Question 9

define market demand

Answer 9

everyone’s demand added up togehter

Question 10

define individual demand

Answer 10

how much of smt one person wants

Question 11

what causes parallel shift in demand?

Answer 11

external factors (weather) ONLY
NOT price

Question 12

define supply curve

Answer 12

how price affects number of goods produced

Question 13

define law of supply

Answer 13

prices rise, so does production

Question 14

define market supply

Answer 14

all producers’ goods available together

Question 15

define individual supply

Answer 15

of goods one producer offees

Question 16

what causes parallel shift in supply curve

Answer 16

changes affecting production (raw material shortages, strikes)

Question 17

define supply and demand equilibrium

Answer 17

where supply and demand curves intersect
market tries to get there on its own
no shortage or surplus

Question 18

define price taker

Answer 18

company must follow market and can’t charge more to be successful