Market Flashcards
What is the definition of a market?
A place or situation where buyers + sellers meet to exchange goods + services.
How can you exchange goods + services in a market?
- Money- via the price system
* Barter
What is market equilibrium?
It is the price where the quantity supplied equals the quantity demanded. The market is cleared.
At this point combined producer profits and consumers satisfaction is maximised.
How can a market be a place?
It is any market that there is physical face to face interaction with buyers + sellers
How is a market a situation?
It is a market that you can exchange goods or services without physically meeting each other.
e.g Internet- Trademe, NZX, Amazon
Postal services- Mail order
Telephone- landline or cellphone
Texting
What are types of money to exchange goods + services?
- Cash or check
- Eftpos
- Debit cards
- Credit card
