103 Markets

Question 1

Market

Answer 1

Any place where buyers and sellers meet (1) to exchange goods/services (1)

Question 2

Competitive market

Answer 2

Numerous producers that want to compete with one another (1) to provide goods/services (1) marketing strategies used to gain an advantage

Question 3

Mass Market

Answer 3

When a business sells to the whole market and markets the product to consumers in the same way

Question 4

Niche Market

Answer 4

Targets the smaller segment of a larger market (1) Where customers have specific needs and wants (1) Market may have less competition

Question 5

Market size

Answer 5

Total number of sales, by value or volume, in a market as a whole

Question 6

Market share (Formula)

Answer 6

Measures firm sales in comparison to market sales

(Sales of business / Sales of market) x100

Question 7

Market segmentation

Answer 7

Process of subdividing a market into identifiable subgroups (1) That have similar needs, wants or characteristics (1) and providing them with goods/services that meet those needs/wants

Question 8

Monopoly

Answer 8

A single or dominant business within the market (1) High barriers to entry (1) Price makers (1) High economies of scale

Question 9

Oligopoly

Answer 9

Few large companies dominate the market (1) May be many small firms

High barriers to entry (1) Price makers (1) High economies of scale (1)

Question 10

Monopolistic competition

Answer 10

Many relatively small businesses (1) No dominant businesses (1) Few barriers to entry (1) Little control over prices (1)

Question 11

Perfect competition

Answer 11

Market where many small firms produce virtually identical products for similar prices (1) ability to enter and leave freely
Many competing businesses (1) Homogenous goods (1) No low barriers to entry exists (1)

Question 12

Consumer protection

Answer 12

Laws that prevent harm such as goods not being fit for purpose or merchantable quality

Question 13

Demand

Answer 13

Quantity of goods/services consumers and willing and able to buy at a given price at a given time

Question 14

Supply

Answer 14

The quantity of goods/services that producers are willing and able to supply to the market at a given price at a given time

Question 15

Market Equilibrium

Answer 15

The price where demand is equal to quantity supplied

Question 16

Price elasticity of demand (Formula)

Answer 16

Measures sensitivity of demand to change in price

% change quantity demanded / % change in price

Question 17

Price elastic

Answer 17

Price elasticity is greater than one

Demand rises or falls by a larger % than the price change

Question 18

Price inelastic

Answer 18

Price elasticity is between 0 and 1

Change in price results in smaller % change in quantity demanded

Question 19

Income elasticity of demand (Formula)

Answer 19

Measures the responsiveness / sensitivity of demand (1) to a change in income (1)

% Change in quantity demanded / Percentage change in income

Question 20

Income elastic

Answer 20

Income elasticity is greater than one

Where quantity demand rises or falls by a larger % than the income change

Question 21

Income inelastic

Answer 21

Income elasticity is between 0 and 1

Where the quantity demand rises or falls by a smaller % than the income change

Question 22

Inferior Goods

Answer 22

A product with Negative income elasticity (1) As income Decreases, demand Increases

Question 23

Normal Goods

Answer 23

A product with positive income elasticity (1) As income Increases, demand Increases

Question 24

Luxury Goods

Answer 24

Goods for which demand Increases when incomes Increase
Positive income elasticity is greater than one