Economics - Market - Notes - Economics, Study notes of Economics

Download Economics - Market - Notes - Economics and more Study notes Economics in PDF only on Docsity! MARKETS Meaning of market A market is a place where commodities are bought and sold at retail or wholesale prices. In economics, however, the term “market” does not refer to a particular place as such but it refers to a market for a commodity or commodities. Thus, the market is an arrangement whereby buyers and sellers come in close contact with each other directly or indirectly; to sell and buy goods is described as market. Hence, the term “market” is used in economics in a typical and a specialized sense. They are:- (i) It does not refer only to a fixed location. It refers to the whole area of operation of demand and supply. (ii) It refers to the conditions in which transactions between buyers and sellers take place. (iii) A group of potential sellers and potential buyers are required at different places for creating market for a commodity. (iv) Markets may be physically identifiable, e.g., the cutlery market in Pondicherry situated at Jawaharlal Nehru Street. (v) Existence of different prices for a specific commodity means existence of different markets.