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[.]
Trang 1ECO107 MICROECONOMICS
Lecturer: MSc Nguyen Thuy Dung
Faculty of Accounting, Banking and Finance
www.hutech.edu.vn/quocte
Trang 2Market and Competition Demand
Equilibrium
TOPIC 2
Supply
2.1
2.2
2.3
2.4
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What is a market?
2.1 MARKET AND COMPETITION
Market and Competition
A market is a group of buyers and sellers of a particular good or services
Trang 4Research objectives
Market
Demand
(behaviors of buyers)
Supply
(behaviors of sellers)
Market Equilibrium
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MARKET AND COMPETITION
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 2 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
Trang 6▪ 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
Quantity
Price
Demand
Q
P
D
Quantity demanded
Q D
2.2
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Demand schedule
Demand
Demand schedule:
A table that shows the relationship between the price of a good and the quantity demanded
Trang 8Demand curve
Demand curve
A graph show
the relationship
between price
of a good and
demanded
Trang 9HUTECH Institute of International Education
Individual and Market demand
Demand
Individual demand
Market demand
Trang 10Demand curve
Assume there’re only Kate and Charlie in the market
demand of milk Each month, Kate buys 6 cans of milk with the price of $1 each; buy 4 cans with $1.5 each Charlie buys 4 cans of milk with the price of $1 each, buy 2 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 = 1
D Q = 16; P = 2,5