Demand and suply

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  • Created by: markalex
  • Created on: 29-01-15 19:31
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  • Demand and supply
    • What is a market?
      • A market exists when buyers and sellers comunicate and exchange goods for money
      • In some markets trade occurs in units such as shops, malls, market squares or kiosks
      • Other markets exist when trading is done over the telephone, using newspaper, through mail order of online
    • The functions of a market system
      • Markets operate together like a sstem . This is market system.
      • Sometime called the price mechanisms performs wo functions
    • Price determination
      • One of the most important things buyers and sellers discuss when trading is the price of the goods or services
      • Buyers and sellers negotiate prices. then they agree to the prices which means that the good is sold if not then they dont make an profit
    • Resource allocation
      • The market system helps to allocate a nations resources.
      • Resources flow from declinng markets where prices are falling markets where prices are rising.
    • Supply
      • Is the amount of a good that sellers are prepared to sell at given prices over a period of time
    • Demand
      • Is the amount of a good that will bre bought at given prices over a period of time.

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