Market Flashcards
1
Q
What is the definition of a market ?
A
A place or situation where buyers + sellers meet to exchange goods + services.
2
Q
How can you exchange goods + services in a market ?
A
. Money - via the price system
. Barter (exchanging goods)
3
Q
What is market equilibrium ?
A
It is the price where the quantity supplied equals the quantity demanded. The market is cleared.
At this point combined producer profits and consumer satisfaction is maximised.
4
Q
How is a market a place ?
A
It is any market that there is physical face to face interaction with buyers and sellers.
5
Q
How is a market a situation ?
A
It is a market that you can exchange goods or services without physically meeting each other. e.g Internet - trade me, NZX, Amazon Postal Services - mail order Telephone - land line or cellphone Texting
6
Q
What are types of money to exchange goods + services ?
A
Cash or Cheque
Eftpos
Debit Cards
Credit Cards
