Nama : Lia
Khoirunnisa
Kelas : 3EB10
NPM : 24212187
Nama
Kelompok :
1. Arfitra Siti Khairuma 21212057
2. Justina Elvida Harahap 24212010
3. Masitoh Sjari 24212474
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The
term ‘market’ , as used by economists, is an extension of the ancient idea of a
market as a place where people gather to buy and sell goods. In former days
part of a town was kept as the market or marketplace, and people would travel
many kilometers on special market days in order to buy and sell various
commodities. Today, however, markets such as the world sugar market, the gold
market and the cotton market do not need to have any fixed geographical
location. Such a market is simply a set of conditions permitting buyers and
sellers to work together.
In
a free market, competition takes place among sellers of the same commodity, and
among those who wish to buy that commodity. Such competition, influences the
prices prevailing in the market. Prices inevitably fluctuate, and such
fluctuations are also affected by current supply and demand
Whenever
people who are willing to sell a commodity contact people who are willing to
buy it, a market for that commodity is created. Buyers and sellers may meet in
person, or they may communicate in some other way: by letter, by telephone or
through their agents. In a perfect market, communications are easy, buyers and
sellers are numerous and competition is completely free. In a perfect market
there can be only one price for any given commodity: the lowest
price which sellers will accept and the highest which consumers will pay. There
are, however, no really perfect market, and each commodity market is subject to
special conditions. It can be said however that the price ruling in a market
indicates the point where supply and demand meet.
(Taken
from A Rapid Course in English for Students of Economics by
Tom McArthur)
A. COMPREHENSION
7.
What there means are mentioned by which buyer and
seller can communicate if they do not meet in person?
Answer : Buyers and sellers may meet in
person, or they may communicate in some other way: by letter, by telephone or
through their agents. In a perfect market, communications are easy, buyers and
sellers are numerous and competition is completely free.
8.
What are the characteristics of a perfect market?
Answer : the characteristic of a perfect market are the
communication are easy, buyers and sellers are numerous and competitions is
completely free there can be only one price for any given
commodity: the lowest price which sellers will accept and the highest which
consumers will pay.
