markets

Perfect Competition Explained

Perfect competition is a hypothetical market where there is a cut-throat competition, all firms are price-takers and market share has no influence on prices. By the way, make sure you read our recent blog on “Monopoly, Monopsony, Oligopoly and Free Market” to have insightful information on these various forms of market structures Let us have …

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Walras’s Law Explained

We know that markets are constantly in flux and prices constantly change. The question is will there always be a price vector where all markets for different goods clear? Being that one of the principle focus of economics is understanding the determination of price, if equilibrium does not occur then we have a serious problem …

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