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Competitive Markets definitions

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Terms in this set (15)

  • Supply
    Amount of a product sellers are willing to offer in a market, influenced by factors like resources and market conditions.
  • Demand
    Quantity of a product buyers are willing to purchase, shaped by preferences, income, and market price.
  • Market
    Group of buyers and sellers interacting for a product, not limited to a physical location.
  • Perfect Competition
    Market structure with many buyers and sellers, identical products, and no participant influencing price.
  • Price Taker
    Participant who accepts the market price without power to set or change it.
  • Product Differentiation
    Distinct features or qualities that set one seller's product apart from another's.
  • Agricultural Products
    Items like wheat or corn, often found in markets where goods are indistinguishable among sellers.
  • Foreign Exchange Market
    Marketplace for trading currencies, where units like dollars are identical and interchangeable.
  • Spice Market
    Traditional setting where sellers offer identical spices, exemplifying competitive market dynamics.
  • Utilities
    Services such as power or water, typically provided by few sellers with pricing influence.
  • Collector's Item
    Unique products, like figurines, with limited buyers and sellers, often affecting price control.
  • Ceteris Paribus
    Analytical assumption holding all other variables constant to isolate effects of a single change.
  • Buyer
    Individual or entity seeking to acquire goods or services in a market.
  • Seller
    Individual or entity offering goods or services to buyers within a market.
  • Market Participant
    Any buyer or seller involved in transactions within a marketplace.