UNDERSTANDING ECONOMICS BUYERS AND SELLERS BarBara Gottfried Hollander Britannica Educational Publishing IN ASSOCIATION WITH ROSEN EDUCATIONAL SERVICES
When it comes time for someone to buy a new cell phone he might spend time researching different kinds to find the ideal one There are many online and local providers providers eagerly competing for his business After researching the competition he finds the phone and the plan at the price he thinks is right for him In another example neighborhood children have a lemonade stand They sell one cup of lemonade for 50 cents It’s a hot day Many people are turning out to buy lemonade and support their business Meanwhile thousands of miles away a student wants to buy a college textbook She finds the book for sale on an online marketplace and makes a bid Other people also bid for the book Her bid wins and she makes the purchase Every day people buy goods such as cell phones drinks and textbooks They also buy services including doctors doctors visits haircuts and car and home repairs A consumer is a person who buys a good or service to consume or use Sellers offer products or services for sale They provide a platform for buyers to shop for different products or services services they need or want In return for providing a product or service sellers earn money Buying and selling is about bringing two groups together A market consists of the buyers and sellers for a particular good or service 4 INTRODUCTION
Buyers put a lot of research into finding just the right type of cell phone Both groups have incentives to participate in the exchange of goods and services Incentives for buyers to purchase purchase a specific product include having a preference for that product and believing it to offer the best value for the price Another incentive for buyers is the convenience of buying the product Incentives for sellers include the willingness to part with an item the opportunity to sell it at a good price and the ability to make a profit from the sale Buyers and sellers must agree on the price of the purchase purchase Price indicates the value of a good or service It is both 5
