Organic Marketing

MODULE III

THE MECHANISM OF AN OPEN MARKET SYSTEM
(week 4 )

MODULE OVERVIEW

Introduction

This module is designed to review a) how open markets operate to determine exchange prices through the forces of supply and demand; b) the definition, calculation and interpretation of elasticity of supply and demand; and c) how to interpret the term efficiency of open market systems. These theories and concepts have all been thoroughly dealt with in the pre-requisites for this course, hence the use of the term "review". If you feel sufficiently conversant with this material, then you are at liberty to skim through and simply refresh your memory. You could then devote the time saved in preparing for your major (group) case study assignment due in week 10. Otherwise do make sure you understand these important theories and concepts reviewed in this module before moving on; also attempt the exercise before moving on.