Market Flashcards
What is the definition of a market?
A place or situation where buyers and 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 consumer 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.
Eg - internet, trademe, NZX, amazon.
Postal Services - mail order.
Telephone - Land line or cellphone
What are types of money to exchange goods + services?
Cash or cheque Eftpos Debit Cards Credit Cards Internet Banking
