Market

Question 1

What is the definition of a market?

Answer 1

A place or situation where buyers + sellers meet to exchange goods + services

Question 2

How can you exchange goods + services in a market?

Answer 2

Money- via the price system

Barter

Question 3

What is market equilibrium?

Answer 3

It is the price where the quantity supplied equals the quantity demanded. The market is cleared. At this point combined produces profits and consumer satisfaction is maximised.

Question 4

How can a market be a place?

Answer 4

It is any market that there is physical face to face interaction with buyer + sellers.

Question 5

How is a market a situation?

Answer 5

It is a market that you can exchange goods or services without physically meeting each other.

eg. internet - Trademe, NZX, amazon
Postal Services - mail order
Telephone - land line or cellphone
Texting

Question 6

What are types of money to exchange goods + services?

Answer 6

Cash or cheque
EFT Pos
Debit Cards
Credit Card
Internet banking