MARKET LEADER

READING
UNIT 9: MARKETS
01 VOCABULARY

02 ORAL QUESTIONS READING

MARKETS

03 COMPREHENSION

04 WORD STUDY
 VOCABULARY
01
 ------------MARKETS-----------
The term “market” as used by economists, is an extension of the ancident idea of a market as a palace where
people gather to buy and sell goods. In former days part of a towm was kept as a market or marketplace, and
people would travel many kilometres on specials market days in oder 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 flluctuations are also affected 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 ways: by
letter, by telephone or through the 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 price for any given
commodity the lowest price seller will accept and the highest price which consumer will pay. There are,
however, no really perfect markets, 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.
VOCABULARY

- Extension (n): sự mở rộng

/ɪk.ˈstɛnt.ʃən/

- Ancient (adj): cổ xưa

/ˈeɪnt.ʃənt/

- Goods (n): hàng hóa.

/ˈɡʊd/

- Commodity (n): hàng hóa

/kə'mɔditi/
 VOCABULARY

- Prevailing (adj): thịnh hành - Agent (n): đại lý

/prɪ.ˈveɪ.ɫiɳ/ /ˈeɪ.dʒənt/

- Inevitably (adv): chắc chắn - Price ruling (n): giá cả

/ɪ.ˈnɛ.və.tə.bə,ly/ hiện hành
/ˈruː.liɳ/

- Fluctuate (v): biến động - Indicate (v): chỉ ra

/ˈflək.tʃə.ˌweɪt/ /ˈɪn.də.ˌkeɪt/
 ORAL QUESTIONS
02 a. What was a market originally?
b. What is a modern market?
c. Among whom does competition take place?
d. What does competition influence?
e. What three things caude prices to fluctuate?
f. When is a market created?
g. What three means are mentioned by which buyers and sellers can
communicate if they do not meet in person?
h. What price operates in a perfect market?
i. What does the ruling price indicate?
 a. What was a market originally?

Para 1, line 1 -> 3:

“The term “market”
as used by
economists, is an => It was a place where
extension of the people gather to buy and sell
ancident idea of a goods
market as a palace
where people
gather to buy and
sell goods.”
 b. What is a modern market?

Para 1, line 6 -> 10:

“Today, however, markets
such as the world sugar
market, the gold market
and the cotton market do => It is a set of conditions
not need to have any permitting buyers and sellers
fixed geographical
location. Suchs a market
to work together.
is simply a set of
conditions permitting
buyers and seller to work
together.”
 c. Among whom does competition take
place ?

Para 2, line 1 & 2:

“In a free market,
competition takes
=> It takes place among
place among sellers
of the same sellers of the same commodity.
commodity, and
among those who
wish to buy that
commodity.”
 d. What does competition influence?

Para 2, line 4 -> 6:

“Prices inevitably
fluctuate, and such => It influences the prices
flluctuations are
prevailing in the market.
also affected
current supply and
demand.”
 e. What three things cause prices to
fluctuate?

Para 2, line 3 -> 6:

“Such competition
influences the prices
prevailing in the => Competition, supply and
market. Prices demand.
inevitably fluctuate,
and such
flluctuations are also
affected current
supply and demand.”
 f. When is a market created?

Para 3, line 1 -> 3:

“Whenever people
who are willing to => A market is created
sell a commodity whenever people who are
contact people who willing to sell a commodity
are willing to buy it, contact people who are willing
a market for that to buy it.
commodity is
created.”
 g. What three means are mentioned by which buyers and
sellers can communicate if they do not meet in person?

Para 3, line 3 -> 5:

“Buyers and sellers
may meet in
person, or they may => They can communicate by
communicate in letter, by telephone or through
some other ways: their agents.
by letter, by
telephone or
through the
agents.”
 h. What price operates in a perfect market?

Para 3, line 7 -> 10:

“In a perfect market
there can be only => The lowest price seller will
price for any given
accept and the highest which
commodity the
lowest price seller consumer will pay.
will accept and the
highest price which
consumer will pay.”
 i. What does the ruling price indicate?

Para 3, line 12 13:

“It can be said => The ruling price indicates
however that the the point where supply and
price ruling in a demand meet.
market indicates the
point where supply
and demand meet.”
 COMPREHENSION
03
 A
State whether these statements are true (T) or false (F), and if they are false state
why

TRUE
TRUE (T) FALSE (F)
FALSE
 STATEMENTS
a. The ancient idea of a geographically fixed market
place has been extended to cover sets of conditions,
which permit buyers and sellers to work together.
b. The world cotton market is not located in any special
place.
c. The competition between buyers of a commodity
influences the prevailing prices.
d.Supply and demand inevitably affect prevailing
prices.
e. A market for a commodity is created whenever
buyers and sellers meet in person but not when they
work through their agents.
f. Competition in a perfect market is conducted in a
completely free way by numerous buyers and sellers
enjoying easy communications.
g. The lowest price which buyers will offer is the only
price in a perfect market.
T/F STATE WHY
The ancient idea of a geographically didn't fixed market
F place has been extended to cover sets of conditions, which
permit buyers and sellers to work together. ( para 1, line 6 ->
10 )
The world cotton market is not located in any fixed
F geographical located. ( para 1, line 7 8)
T ( para 2, line 1 -> 4 )
T ( para 1, line 4 -> 6 )
A market for a commodity is created whenever buyers and
F sellers meet in person and also when they work through
their agents. ( para 3, line 1 -> 5 )
T ( para 3, line 6 -> 8 )
F The highest price which buyers will offer is the only price in a
perfect market. ( para 3, line 8 -> 10 )

h. Each commodity market is imperfect in some special T ( para 3, line 10 -> 12 )

way.
 B
Arrange these sentences in their proper sequence in order to obtain a paragraph on
durable goods.
a. The lowest price which buyers will offer is the c. Certain commodities have a wider market than
only price in a perfect market. others.

b. Commodities like these can be bought and sold and e. Durable goods, for example, have a far wider market
stored without difficulty by people, who live far from than perishable goods.
each other and from the sources of supply.

b. Commodities like these can be bought and sold and

c. Certain commodities have a wider market than others. stored without difficulty by people, who live far from
each other and from the sources of supply.

d. In addition, commodities which are easy to transport, d. In addition, commodities which are easy to
safe to handle and simple to grade are generally in transport, safe to handle and simple to grade are
universal demand. generally in universal demand.

e. Durable goods, for example, have a far wider market f. For this reason such goods are a good commercial
than perishable goods. proposition simply because the risk of investing in
them is relatively low.

f. For this reason such goods are a good commercial a. The lowest price which buyers will offer is the only
proposition simply because the risk of investing in them price in a perfect market.
is relatively low.
 WORD STUDY
04 Study the listed words. Use them to complete these
sentences.
Vary (v) Varied (adj)

Variable (adj) Various (adj)

Variation (n) Variety (n)
a. Conditions on that market are stable and do
vary
not............change very much from year to year.
varied
b. That businessman handles a very...............selection of
products including bananas, toys, cars.
c. It is often difficult to classify the types of economic system in
various
the world, because they tend to possess...................elements of
capitalism and communism in different degrees.
d. The managers of that company hope to increase
variety products which they offer for sale to the public.
the..............of
variation
e. There has been little.......................in price levels over the last
five years.
f. Because prices on that market fluctuate considerably
variable
from................week to week, we say that they are.
 READING
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