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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 marketdays 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, communcations 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 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)
- COMPREHENSION
9.
What
price operates in a perfect market?
Only one price
for any given commodity: the lowest price which sellers will accept and the
highest which consumers will pay
10. What does the rulling price indicate?
The price ruling
in a market indicates the point where supply and demand meet.
The member of group
1. Eka edvia campernik
2. Eka evisesman
zendrato
3. Nurul irmawati
4. Rahayu afriyani
5. Tiera alta meilani
