1.2.3 Markets Flashcards
1
Q
What is a market?
A
In a market, prices for goods/services are determined by the interaction of demand & supply.
A market is any place that brings buyers & sellers together to trade at an agreed price
2
Q
What is an equilibrium price and what are the benefits?
A
Sellers will gradually adjust their prices until there is an equilibrium price and quantity that works for both parties.
At the equilibrium price, sellers will be satisfied with the rate/quantity of sales.
At the equilibrium price, buyers are satisfied that the product provides benefits worth paying for
3
Q
A
