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

1. Money- via the price system

2. Barter- trading with no price.

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 producer 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 buyers + 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. e.g internet- trade me, NZX, Amazon, Postal Services- mail order, texting.

Question 6

What are types of money to exchange goods + services?

Answer 6

1. Cash or Cheque
2. Eftpos
3. Debit Cards
4. Credit Card
5. Internet banking