ECONOMICS AND MARKET STRUCTURES

The principles of supply and demand work most effectively under "perfect competition."  The large number of buyers and sellers and the ability of producers and consumers to adjust to price changes make it easy to understand how the Laws of Supply & Demand work.  These principles also function ( although less precisely) in oligopolies, monopolies and in monopolistic competiion. 

Step 1: For this journal select monopolies, oligopolies or monopolist compeitition.

Step 2:  Read about its characteristics in Chapter 7 Section 1.

Step 3:  Answer the following questions for your market type:

1)  To what extent do the laws of supply & demand still work?

2)  In what ways do they work less perfectely compared to "Perfect Competition?"