Question

Assignment Details Please draw on your experiences and what you have observed to address the following questions and topics. Choose a market for a good in your area that seems to be a perfectly competitive market. Perfect competition is useful in analyzing real-world markets, even though there are very few, if any, that match the characteristics of the perfect competition model. Answer the following questions to describe the market, and describe how competitive the market you have chosen is: 1. What good or service is provided in this market? 2. Who are the buyers and who are the sellers in the market? 3. Are there many sellers in the market? 4. Are there very many substitutes for the good or service? 5. If the store where you usually buy this item raised its prices, would you go to another store or switch products? Explain. 6. Do you think that this a competitive market? Explain.

Answer 1

1.'Goods are the physical objects while 'Services is an activity of performing work for others. There are four different types of good or services in economics which can be classified based on excludability and rivalrousness: private goods, public goods, common resources, and club goods. private goods are products that are excludable and rival. eight high demand ecommerce products ideas to sell this year Planner, Facial products, Smartphone accessories, Subscription boxes, Handcrafted wood products and other.

2. Buyers demand goods and services and Sellers supply goods and services. Markets exist with the interaction of buyers and sellers. the price is what people pay when they buy the goods or service, and what they receive when they sell the goods and services consumers will buy.

3. A seller's market occurs when demand exceeds supply. there are four basic types of market structure: Perfect competition, Imperfect competition, Oligopoly, and Monopoly. Perfect competition describes a market structure, where a large number of small firms compete against each other.

4. A substitute or substitute good, in economics and consumer theory is a product or service a consumers sees as the same or similar to another product. Availability of substitute goods. the more possible substitutes there are for a given good or service, the greater the elasticity are available, consumers can easily switch from one good to another even if there is only a small change in price. For examples coco-cola and Pepsi, car, motorbike, bike and public transport.

5. Switching costs can be broken down into two categories: low and high costs switching. the price difference depends mostly on ease of transfer, as well as available, similar products of the competition. switching costs are the cost the consumer pays as the result of switching brands or products.

6. The market price is determined solely by supply and demand in the entire market and not by the individual farmer. producers in a number of industries do. however, face many competitor firms selling highly similar goods, in which case they must often act as price takers. All competitive markets share five characteristics: Profit, Diminish ability, Rivalry, Excludability, and Rejectability.