The Market Flashcards
1
Q
What is the definition of a market?
A
A place or situation where buyers and sellers meet to exchange goods and/or services.
2
Q
What is market equilibrium?
A
The price where the quantity supplied = the quantity demanded and the market is cleared. Consumer satisfaction and producer profits are maximised at this point.
3
Q
How can goods or services be exchanged?
A
- Barter
- Money (Credit/Cash)
4
Q
What is a market place?
A
A physical environment where face to face transaction happens.
5
Q
What is a market situation?
A
Where exchange of goods and services happen with out physical face to face transitions.
- Internet e.g Trade Me
- Telephone call
- Postal Service
- Texting
