Karteikarten: Fundamentals of Market Dynamics — 18 Karten

Market — definition?

A place where supply and demand meet.

Offerers — role?

Propose goods/services to maximize profit.

Demanders — role?

Seek to buy at best price.

Exchange — mechanism?

Trade involving transfer of ownership.

Monetary counterpart — meaning?

Payment in money for goods/services.

Market as an institution — concept?

Structured by rules, laws, trust.

Trust — importance?

Enables confident market participation.

Property rights — role?

Define ownership, secure exchanges.

Market rules — purpose?

Ensure fairness, transparency.

Pure competition — key?

Many offerers/demanders, no influence.

Oligopoly — characteristic?

Few offerers with some market power.

Monopoly — feature?

Single offerer with significant control.

Pure competition — conditions?

Many buyers/sellers, homogeneous goods, free entry, full info, resource mobility.

Supply — response to?

Price increases lead to higher supply.

Supply determinants — examples?

Price, marginal cost, production factors.

Demand — influenced by?

Budget, utility, opportunity cost, price elasticity.

Equilibrium price — where?

Where supply and demand curves intersect.

Market shock — effect?

Shifts supply/demand, alters prices/quantities.