Ø What is a
'Market'?:
A market is a medium that allows buyers and sellers of a specific good or service
to interact in order to facilitate an exchange. This type of market may either
be a physical marketplace where people come together to exchange goods and
services in person, as in a bazaar or shopping center, or a virtual market
wherein buyers and sellers do not interact, as in an online market.
Ø Definition
of 'Demand Curve':
The demand curve is a graphical
representation of the relationship between the price of a good or service and
the quantity demanded for a given period of time. In a typical representation,
the price will appear on the left vertical axis, the quantity demanded on the
horizontal axis.
Ø Equilibrium price:
In ordinary usage, price is the quantity of
payment or compensation given by one party to another in return for goods or
services at a market equilibrium determined by intersection of
supply & demand. In modern economies, prices are
generally expressed in units of some form of currency.
Ø Market demand curve;
The market demand curve is the
summation of all the individual demand curves in a given market.
It shows the quantity demanded of the good by all individuals at varying price
points. For example, at $10/latte, the quantity demanded by everyone in
the market is 150 lattes per day.
Ø Market demand schedule:
Market demand schedule refers to a tabular
statement showing various quantities of a commodity that all the consumers are
willing to buy at various levels of price, during a given period of time. It is
the sum of all individual demand schedules at each and every
price.
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