Question

Explain the concept of market.

Answer 1

1. A market is generally understood as a particular place or locality where goods are sold and purchased.
2. But, in economics, At any point in time, a market will exist if there are: 1) Buyers and sellers 2) A product or service to be bought and sold 3) the Price of the product 4) Close contact between buyers and sellers 5) Knowledge about the market.
3. But, in economics, market refers to an arrangement through which buyers and sellers come in contact with each other directly or indirectly and the exchange of goods and services takes place among them. It is a network of dealings between potential buyers and potential sellers.
4. According to Augustin Cournot, “Economists understand the term market, not any particular marketplace in which things are bought and sold, but the whole of any region in which buyers and sellers are in such a close contact with one another that the prices of the same goods tend to equality easily and quickly.”