Functions of Markets (Grade 10 NSC Matric Economics): Flashcards
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Three main functions of markets
Three main functions of markets
Supply/demand meeting, resource allocation, self-regulation
What markets provide (vs govt control)
What markets provide (vs govt control)
Choice in economic decisions
First function of markets
First function of markets
Bring supply and demand together
Role of competition in markets
Role of competition in markets
Keeps profit-making under control
Characteristics of perfect market
Characteristics of perfect market
All info available, many suppliers & buyers
Second function of markets
Second function of markets
Allocate resources/guide production decisions
What price signals do
What price signals do
Show producers where to invest resources
Third function of markets
Third function of markets
Self-regulation (automatic adjustment)
Market response when prices too high
Market response when prices too high
Demand drops, producers lower prices
Market response when prices too low
Market response when prices too low
Supply decreases, prices increase