Demand and suply
- 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.
- What is a market?
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