Equilibrium Price And Quantity Flashcards
1
Q
Define market
A
Any contact or communication between potential buyers a.dd sellers of a good or service
2
Q
Where can we find markets
A
Anywhere, since buyers and sellers can meet to negotiate the exchange of goods and services using telephones, faxes, emails and the internet
3
Q
When is a market in equilibrium
A
If the quantity demanded is equal to the quantity supplied
4
Q
What is the market price
A
The price of a good or service that prevails when the market is in equilibrium
5
Q
What is perfect competition
A
An ideal market situation where none of the individual buyers and sellers are able to influence the price of the good or service
6
Q
Who is said to be price takers
A
The buyers and sellers
7
Q
Why are they called price takers
A
They cannot influence the price of a good or service
