Unit 2.1 - Competitive Markets: Demand and Supply - Introduction to Competitive Markets

Question 1

What is a Market

Answer 1

Any kind of arrangement where buyers and sellers of goods,services or resources are linked together to carry out an exchange

Question 2

What is a Competitive Market

Answer 2

• Large numbers of buyers and sellers acting independently so that no one individual seller or small group of sellers has the ability to control the price of the product sold.
• Instead the price of the product is determined by the forces of demand and supply