Economics Midterm Review (Part 3)

___ are groups of buyers and sellers of a good or service

___ determines demand

___ determines supply

Markets where buyers and sellers meet at a specific place and time

• Command Market

• Highly organized market

• Less organized market

• Market market

Markets where varied and multiple sellers posts their price and a buyer decides what to buy

• Command Market

• Highly organized market

• Less organized market

• Market market

What form of market is listed below:

Auction of Rare Paintings

• Highly organized market

• Less organized market

What form of market is listed below:

Grocery Store

• Highly organized market

• Less organized market

A competitive market is defined as one where ___

• Multiple buyers and sellers that each has a negligible impact on market price

• A single market player determines price

• Several buyers and sellers rapidly change market price

• Some buyers decide amongst multiple sellers

Which set of the given numbers is true

A market is perfectly competitive when:

1) goods offered are exactly the same

2) no single entity has influence on price

3) there are more sellers than buyers

4) there is no change in price

• All 4

• 1, 2, 4

• 2, 3

• 1, 2

Price takers refer to a scenario when buyers can buy all they want and sellers can sell all they want

• True

• False