The Market

Question 1

Whats the definition of a market?

Answer 1

A place or situation where buyers and sellers meet to exchanges goods and/or services.

Question 2

What is market equilibrium?

Answer 2

The price where the quantity supplied is equal to the quantity demanded and the market is cleared. Consumer satisfaction and producer profits are maximised at this point

Question 3

How can goods and services be exchanged?

Answer 3

Barter and money

Question 4

What is a market place

Answer 4

A physical environment where face to face transactions happen

Question 5

What is a market situation

Answer 5

Where exchange of good or services happen with out physical face to face transactions.
Internet
Telephone call
Postal Service
Texting

Question 6

How to write an excellence explanation for movements on the curve.

Answer 6

At the price $10 (p1) the quantity supplied is 100 dvd’s per week (Qs). The quantity demanded is 400 per week (Qd).
There is a shortage of 300 dvds at P1.The price will rise from $10 (P1) to $25 (Pe). The quantity supplied rises from 100 (Qs) to 250 (Qe) dvds per week. The quantity falls from 100 (Qd) to 250 (Qe) dvds per week.

This is because of the law of supply and demand.

At Pe and Qe we are at market equilibrium. At this point the market has been cleared. Consumer satisfaction and producer profits are maximised.