introduction to markets
TRANSCRIPT
AS Unit F581:AS Unit F581:Markets in actionMarkets in action
Competitive markets Competitive markets and how they workand how they work
An introduction An introduction to marketsto markets
What is a market?What is a market?
Any place or mechanism that brings together buyers and sellers in order to trade or exchange products
Why are markets important?
Markets determine the price of goods and services
Markets allocate scarce
resources
Markets allow consumers to express their preferences and producers to earn profit and
provide ‘signals’
In your table groups make a list of the different kinds of markets you have
heard of
eg
(‘the housing market’)
Keep on task:Keep on task:time is ticking away …time is ticking away …
In your table groups make a list of In your table groups make a list of the different kinds of markets you the different kinds of markets you have heard ofhave heard of
countdown.mp3
Different kinds of marketsDifferent kinds of markets
housing
market
foreign exchange marketstock market
retail market
oil market
labour market
commodity markets
financial markets
leisure
markets
Task: investigating Task: investigating marketsmarketsIn groups of three, you are going to investigate a range of markets to try to come up with reasons which might explain changes in market prices.
In each case you should:
describe how the market price is changing over time;
conduct some research into the market using the internet;
suggest reasons for the price changes you have described;
present your findings to the rest of the class.
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Conclusions from Conclusions from investigationinvestigation
Prices are determined by the interaction of the forces
of demand and supply.
Prices are determined by the interaction of the forces
of demand and supply.
If there is too much demand relative to supply,
prices will tend to rise.
If there is too much demand relative to supply,
prices will tend to rise.
If there is too much demand relative to supply,
prices will tend to rise.
If there is too much demand relative to supply,
prices will tend to rise.
If there is insufficient demand relative to
supply, prices will tend to fall.
If there is insufficient demand relative to
supply, prices will tend to fall.