Question

Write the features of market.

Hint:

Modern markets often function without a physical location through digital platforms (E-commerce), highlighting that "contact" is more important than "place".

Answer 1

Step 1: Understanding the Concept:
In economics, a market does not necessarily refer to a physical place.
It refers to the whole area where buyers and sellers are in contact with each other for the purpose of trade.
Step 2: Detailed Explanation:
The key characteristics of a market are:
1. Area: It represents the entire region where buyers and sellers operate.
2. Buyers and Sellers: Both parties must exist to facilitate exchange.
3. Commodity: There must be a specific good or service being bought and sold.
4. Single Price: Under ideal conditions (like perfect competition), there is a tendency for a uniform price to prevail.
5. Communication: Efficient means of contact (direct or indirect) must exist between buyers and sellers.
Step 3: Final Answer:
A market is characterized by a group of buyers and sellers, a commodity, an exchange mechanism, and a price determination process.