1. AS Unit F581:AS Unit F581:
Markets in actionMarkets in action
Competitive marketsCompetitive markets
and how they workand how they work

2. An introduction toAn introduction to
marketsmarkets

3. 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

4. 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’

5. In your table groups
make a list of the
different kinds of
markets you have
heard of
eg
(‘the housing market’)

6. Keep on task:Keep on task:
time is ticking away …time is ticking away …
In your table groups make a list ofIn your table groups make a list of
the different kinds of markets youthe different kinds of markets you
have heard ofhave heard of
countdown.mp3

7. Different kinds of marketsDifferent kinds of markets
housing market
foreignexchangemarket
stock market
retail market
oil market
labour market
commoditymarkets
financial
markets
leisure markets

8. Task: investigating marketsTask: investigating markets
In 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.
email to: stephenwalton@kingschester.co.uk

9. Conclusions from investigationConclusions from investigation
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.

10. 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.

11. 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.