ECO107 MICROECONOMICS Lecturer MSc Nguyen Thuy Dung Faculty of Accounting, Banking and Finance www hutech edu vn/quocte HUTECH Institute of International Education Supply and Demand Market and Competi[.]
ECO107 MICROECONOMICS Lecturer: MSc Nguyen Thuy Dung Faculty of Accounting, Banking and Finance www.hutech.edu.vn/quocte TOPIC 2.1 2.4 Market and Competition 2.2 Demand 2.3 Supply Equilibrium HUTECH Institute of International Education Supply and Demand 2.1 MARKET AND COMPETITION What is a market? A market is a group of buyers and sellers of a particular good or services HUTECH Institute of International Education Market and Competition Research objectives Market Supply Demand (behaviors of sellers) (behaviors of buyers) Market Equilibrium MARKET AND COMPETITION ▪ Competitive market: a market with many buyers and sellers and each of them has a negligible effect on market price ▪ A perfectly competitive market must have characteristics: (1) All goods exactly the same (2) Buyers & sellers so numerous that no one can affect market price – each is a “price taker” ▪ In this chapter, we assume markets are perfectly competitive HUTECH Institute of International Education Market and Competition 2.2 DEMAND ▪ The quantity demanded of any good is the amount of the good that buyers are willing and able to purchase ▪ Law of demand: the claim that the quantity demanded of a good falls when the price of the good rises if other things being equal Q Quantity P Price D Demand QD Quantity demanded HUTECH Institute of International Education Demand Demand schedule Demand schedule: A table that shows the relationship between the price of a good and the quantity demanded HUTECH Institute of International Education Demand Demand curve Demand curve A graph show the relationship between price of a good and the quantity demanded HUTECH Institute of International Education Demand Individual and Market demand Individual demand Market demand HUTECH Institute of International Education Demand Demand curve Assume there’re only Kate and Charlie in the market demand of milk Each month, Kate buys cans of milk with the price of $1 each; buy cans with $1.5 each Charlie buys cans of milk with the price of $1 each, buy cans with $1.5 each Which point will be on the market demand curve of milk? A Q = 2; P = 1,5 B Q = 4; P = 2,5 C Q = 10; P = D Q = 16; P = 2,5 HUTECH Institute of International Education Demand ... Education Demand Individual and Market demand Individual demand Market demand HUTECH Institute of International Education Demand Demand curve Assume there’re only Kate and Charlie in the market demand. ..TOPIC 2. 1 2. 4 Market and Competition 2. 2 Demand 2. 3 Supply Equilibrium HUTECH Institute of International Education Supply and Demand 2. 1 MARKET AND COMPETITION What is a market?... Market and Competition 2. 2 DEMAND ▪ The quantity demanded of any good is the amount of the good that buyers are willing and able to purchase ▪ Law of demand: the claim that the quantity demanded