Market Flashcards
What is the definition of a market?
A place or a situation where buyers or sellers meet to exchange good and services.
How can you exchange good and services in a market?
Money- via the price system, or barter- trade with no price
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 in maximised.
How can a market be a place?
It is any market that there is physical face to face interaction with buyers and 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, txting.
What are types of money to exchange goods and services?
cash or cheque, eftpos, paypal, debit cards.
