Grade 8
EMS
Term 3 Week 8
4 - 8 Sept 2023
The Economy – Markets
1. Introduction (role play)
In this class, who loves chocolate the most?
And who loves money the most?
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Lesson Objectives
At the end of this lesson learners must be
able to:
• Explain what a market is
• Differentiate between highly and loosely organized markets
• Evaluate what determines price in a market
• Identify the two types of markets
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2. Types of markets
There are two different types of markets :
• Goods and services market
• Factor market
In this lesson, we’ll be focusing on the goods and services markets.
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2.1 What is a market?
A market can be defined as any place where
people who buy and people who sell,
exchange goods and services in an
economic transaction.
Simply put – a market is group of sellers and
buyers of a particular good or service.
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Which is which?
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2.2 Not all markets are the same
Highly organized
Less Organized
Examples
The fresh produce market
Spaza shop
Appointment
Buyers and sellers meet at a specific Buyers
date and time
anytime
Sales
An auctioneer may help set prices and Has no auctioneer,
arrange sales
display prices
Types of products/services
Offer slightly different products
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and
sellers
meet
sellers
Offer homogeneous products
Which is which?
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2.3 The price is determined on the market
Most markets in the country are highly competitive. Each buyer knows
there’s many sellers to choose from. Each seller knows that his/her
product is similar to the product that other sellers offer.
Therefore, no single buyer and seller determines the price and quantity
sold. Rather, all buyers and sellers determine the price and quantity as
they interact in the marketplace. This is called a competitive market.
Sellers offer goods and services for sale and buyers offer them money
for the goods and services. The demand for and supply of the goods
and services determine the price of these goods and services.
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2.3 The price is determined on the market
If there are many products and not many buyers, the price of the
products would decrease. However, if there's a shortage of products
and many buyers, the price of products would increase.
A well-functioning market has the following characteristics:
• Many buyers and sellers.
• Buyers and sellers have equal access to information.
• Products are comparable.
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2.4 Different kinds of markets
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Classwork
Spot test
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