Table of contents

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0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

3. The Market Forces of Supply and Demand

Competitive Markets

Microeconomics

3. The Market Forces of Supply and Demand

Competitive Markets

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Multiple Choice

Which of the following goods would most likely be sold in a perfectly competitive market?

Luxury cars

Wheat

Laptop Computers

Pizza

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Understand the characteristics of a perfectly competitive market: Many buyers and sellers, homogeneous products, free entry and exit, and perfect information.

Evaluate each good based on these characteristics. Consider if there are many sellers and if the product is homogeneous.

Luxury cars: Typically, these are differentiated products with brand value, not homogeneous, and there are few sellers, so they do not fit a perfectly competitive market.

Laptop Computers: These are also differentiated products with brand and feature variations, and there are barriers to entry, so they do not fit a perfectly competitive market.

Wheat: This is a homogeneous product with many sellers and buyers, and there are few barriers to entry, making it a good fit for a perfectly competitive market.