Section II Flashcards
1
Q
What is a market
A
It is comprised of all the buyers and sellers of a particular good or service
2
Q
How are the pice and quantity sold in a market determined?
A
It is determined by the combined actions of all the buyers and sellers in the market
3
Q
What do we mean by saying a market is ‘perfectly competitive’
A
If the good/service being bought/sold is highly standardized, the number of buyers & sellers is large, and all the participants are well informed
4
Q
What is the central topic of microeconomics
A
The interaction of supply and demand in markets
