The Market Flashcards
What is the definition of a market?
A place or situation where buyers + sellers meet to exchange goods and/or services.
What is market equilibrium?
The price where the quantity supplied = the quantity demanded and the market is cleared. Customer satisfaction and producer profits are maximized at this point.
How can goods or services be exchanged?
- Barter
- Money (Credit, Cash)
What is a market place?
A physical environment where face to face transactions happen.
What is a market situation?
Where exchange of goods and/or services happen without physical face to face transactions.
- Internet
- Telephone call
- Postal service
- Texting
How to write Excellence for rising movements on a curve
At the price of $10 (P1) the quantity supplied is 100 dvds per week (Qs) The quantity demanded is 400 dvds per week (Qd). There is a shortage of 300 dvds per week at P1. As the price rises from $10 (P1) to $25 (Pe), the quantity supplied rises from 100 (Qs) to 250 (Qe) dvds per week and the quantity demanded falls from 400 (Qd) to 250 (Qe) dvds per week. This follows the laws of supply and demand. At Pe and Qe we are at market equilibrium. At this point the market for dvds per week has been cleared, consumer satisfaction and supplier profits are maximised.
How to write Excellence for decreasing movements on a curve
At the price of $80 (P1) the quantity demanded is 7500 lift tickets in winter (Qd). The quantity supplied is 17500 lift tickets in winter (Qs). There is a surplus of 10000 lift tickets in winter at P1. As the price falls from $80 (p1) to $60 (Pe), the quantity demanded rises from 7500 (Qd) to 12500 (Qe) lift tickets in winter and the quantity supplied falls from 17500 (Qs) to 12500 (Qe) pift tickets in winter. At Pe and Qe we are at market equilibrium. At this point the market for dvds per week has been cleared, consumer satisfaction and supplier profits are maximized.
