3 Think of examples of goods whose relative price has risen or has fallen by a large...
Question:
3 Think of examples of goods whose relative price has risen or has fallen by a large amount Markets vary in the intensity of competition that buyers and sellers face. In this chapter, we’re going to study a competitive market – a market that has many buyers and many sellers, so no single buyer or seller can influence the price.
Producers offer items for sale only if the price is high enough to cover their opportunity cost. And consumers respond to changing opportunity cost by seeking cheaper alternatives to expensive items.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Economics
ISBN: 9781118150122
10th European Edition
Authors: Michael Parkin, Dr Melanie Powell, Prof Kent Matthews
Question Posted: