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HSPM J712 Oct. 7, 2009
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Supply and Demand Supply side – sellers Fable of the marketplace – Free trading among people leads a social optimum
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Free competition Each seller is small relative to the whole market None has market power – Market power means able to restrict the total supply and thus drive up the price In a money-based system, each seller’s demand is elastic. – You can sell as much as you want at the going market price.
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In a free, competitive, market There is a going price. – If there were price differences, then arbitrageurs would get rid of the price differences. Price is forced down to cost. – For the marginal seller. Price is a given (for the individual seller) – Seller adjusts to it
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Health professionals and institutions’ political contributions http://www.opensecrets.org/politicians/indus tries.php?cid=N00024809&cycle=2010 http://www.opensecrets.org/politicians/indus tries.php?cid=N00024809&cycle=2010
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