NAMA
: NUR BELLA ASRINDO
NPM
: 28212335
KELAS :
3EB10
NAMA ANGGOTA KELOMPOK :
·
ARFITRA SITI KHAIRUMA 21212057
·
JUSTINA ELVIDA HARAHAP
24212010
·
LIA KHOIRUNNISA
24212187
·
MASITOH SJARI RAHMAH ALMU
24212474
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
perfectr 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
3. What is main idea
of paragraph 2?
Answer : In a free market, competition takes place among sellers of the
same commodity, and among those who wish to buy that commodity.
4. Describe the competition in a free market!
Answer : The competition in a free market, such competition influences
the prices prevailing in the market also affected by current supply and demand.
