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agreement on the price and quantity traded
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How do buyers and sellers share the burden when a tax is levied on a good?
When a tax is imposed on a good, buyers and sellers typically share the burden by adjusting the price of the good. Sellers may increase the price to cover the tax, which can lead to higher prices for buyers. Buyers may also end up paying more for the good as a result of the tax. Ultimately, the burden of the tax is shared between buyers and sellers through changes in the price of the good.
In a competitive market the actions of any single buyer or seller will?
In a competitive market, the actions of any single buyer or seller will have little to no impact on the overall market price or supply. This is because there are many buyers and sellers, and each participant's individual transactions are too small to influence the market dynamics significantly. As a result, buyers take prices as given, and sellers must accept the market price for their goods. This leads to an efficient allocation of resources, where prices reflect the collective behavior of all market participants.
Do buyers and sellers as one group determine demand but only seller determine supply?
Yes. Buyers want a product and those that sell it regulate how much of it they sell to the buyers, therefore controlling the supply as a result of the demand.
Where there is asymmetric information between buyers and sellers?
Asymmetric information occurs when one party in a transaction possesses more or better information than the other, often leading to market inefficiencies. In such scenarios, sellers may have more knowledge about the quality of a product than buyers, which can result in adverse selection, where only low-quality goods are sold. This imbalance can diminish trust and hinder fair pricing, ultimately affecting market dynamics and consumer behavior. Effective solutions, like warranties or third-party certifications, can help bridge the information gap.
How do you define market and explain how markets are classified?
Market in Economics is the result of contanct between the buyers and sellers, as a result of which one product of a given quantity and trade mark is brought and sold at one place. Types of markets 1.on the basis of place or area , market is classified into three types: i)local market, ii) national market and iii)international market. 2.on the the basis of time market is classified into four types: i)market period, ii)short period, iii)long period and iv)secular market. 3.on the basis of degree of competition market is classified into three types: i) Perfect competition ii) Imperfect competition and iii) Monopoly
How do buyers and sellers share the burden when a tax is levied on a good?
When a tax is imposed on a good, buyers and sellers typically share the burden by adjusting the price of the good. Sellers may increase the price to cover the tax, which can lead to higher prices for buyers. Buyers may also end up paying more for the good as a result of the tax. Ultimately, the burden of the tax is shared between buyers and sellers through changes in the price of the good.
Why did the real patron of buyers of the pearl keep all these men in different offices?
The real patron of buyers of the pearl keep all these men in different offices to create an impression in the sellers that they have good bargain and they are not being cheated as a result of market monopoly.
In a competitive market the actions of any single buyer or seller will?
In a competitive market, the actions of any single buyer or seller will have little to no impact on the overall market price or supply. This is because there are many buyers and sellers, and each participant's individual transactions are too small to influence the market dynamics significantly. As a result, buyers take prices as given, and sellers must accept the market price for their goods. This leads to an efficient allocation of resources, where prices reflect the collective behavior of all market participants.
How does the concept of monopoly impact the selling of property in the real estate market?
The concept of monopoly in the real estate market can impact the selling of property by limiting competition and potentially leading to higher prices for buyers. When a single entity or a small group of entities control a significant portion of the market, they can dictate prices and terms, reducing options for buyers and sellers. This can result in less competitive pricing and potentially hinder market efficiency.
Do buyers and sellers as one group determine demand but only seller determine supply?
Yes. Buyers want a product and those that sell it regulate how much of it they sell to the buyers, therefore controlling the supply as a result of the demand.
What is low buyer power?
Low buyer power refers to a situation where buyers have minimal influence over prices or terms in a market due to factors such as limited choices, high switching costs, or lack of information. This can result in sellers having more control over pricing and conditions.
How do you define market and explain how markets are classified?
Market in Economics is the result of contanct between the buyers and sellers, as a result of which one product of a given quantity and trade mark is brought and sold at one place. Types of markets 1.on the basis of place or area , market is classified into three types: i)local market, ii) national market and iii)international market. 2.on the the basis of time market is classified into four types: i)market period, ii)short period, iii)long period and iv)secular market. 3.on the basis of degree of competition market is classified into three types: i) Perfect competition ii) Imperfect competition and iii) Monopoly
A weaker demand together with a stronger supply would necessarily result in?
lower prices for the goods or services in question. With less demand and more supply available, sellers would need to lower prices to attract buyers and move their inventory. This could lead to a surplus of goods or services in the market.
What do you mean about price taker?
A price taker is an economic term that refers to a firm or individual that must accept the prevailing market price for a product or service because they lack the market power to influence it. This typically occurs in perfectly competitive markets, where numerous buyers and sellers exist, leading to a uniform price. Price takers cannot set their own prices; instead, they must adjust their output based on the market price. As a result, their revenue is directly determined by the market price and the quantity sold.
What is the difference between perfect competition and monopoly competition?
In perfect competition, the market consists of a large number of buyers and sellers of an identical good. A real world example that is close to this is the market for farm commodities, such as wheat or soybeans. The critical feature is that there are so many buyers and sellers that each buyer and seller assumes that their behavior will have no impact on the final market clearing price. That is, they assume the price will be $X no matter how much they buy and sell and furthermore they assume that they can buy and sell as much of the good as they want/can afford at that price. This sort of assumption is called "price taking behavior". In contrast, a monopolistically competitive market has many sellers, but they each sell a unique good. A good example of this is the soda market, which has many competing sellers such as Coke, Pepsi, Royal Crown, 7up, etc. Here, each seller can set whatever price they want for the good that they control, but they have to take into account how many other goods are close substitutes for the good that they sell. If there are many close substitutes, the end result will be similar to a perfectly competitive market; each seller will earn zero economic profit. In contrast, if no close substitutes exist, the market is a plain old monopoly and the monopolist earns economic profits.
When sellers in a competitive market take the selling price price as given they are said to be?
When sellers in a competitive market take the selling price as given, they are said to be price takers. This means they accept the market price determined by supply and demand without influencing it, as their individual sales contribute only a small portion to the overall market. As a result, they cannot set their own prices and must sell at the prevailing market rate to remain competitive.
What are the characteristics of monopsony?
Ans: In economics, a monopsony is a market form in which only one buyer faces many sellers. It is an example of imperfect competition, similar to a monopoly, in which only one seller faces many buyers. As the only or majority purchaser of a good or service, the "monopsonist" may dictate terms to its suppliers in the same manner that a monopolist controls the market for its buyer.A monopsony is a market condition where multiple sellers, [the majority of sellers in that market] all have to sell to the same individual buyer because that buyer is buying a significant portion of the entire market. This gives the buyer the advantage because the buyer can keep asking each seller to match or undercut the competing sellers prices, thus driving down the prices of the products in that market.Single Buyer: First and foremost, a monopsony is a monopsony because it is the only buyer in the market. The word monopsony actually translates as "one buyer." As the only buyer, a monopsony controls the demand-side of the market completely. If anyone wants to sell the good, they must sell to the monopoly.No Alternatives: A monopsony achieves single-buyer status because sellers have no alternative buyers for their goods. This is the key characteristics that usually prevents monopsony from existing in the real world in its pure, ideal form. Sellers almost always have alternatives.Barriers to Entry: A monopsony often acquires and generally maintains single buyer status due to restrictions on the entry of other buyers into the market. The key barriers to entry are much the same as those that exist for monopoly: (1) government license or franchise, (2) resource ownership, (3) patents and copyrights, (4) high start-up cost, and (5) decreasing average total cost.
