ABSTRACT
The stock exchange is an example of a perfect market – equilibrium price is constantly changing to reflect changes in demand and supply. There is some evidence to suggest that the Internet is leading to markets becoming less imperfect as consumers are able to get more information about prices and products, and source their purchases from a wider range of suppliers.
Generally, as the price of a good or a service increases, the demand for it falls, ceteris paribus, as illustrated in Table 3.1. This gives rise to the demand curve shown in Figure 3.1.
