3 Think of examples of goods whose relative price has risen or has fallen by a large...

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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.

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Economics

ISBN: 9781118150122

10th European Edition

Authors: Michael Parkin, Dr Melanie Powell, Prof Kent Matthews

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