Question

Write the features of market.

Hint:

Remember that "Contact" between buyer and seller is more important than "Location." A stock market or an e-commerce site (like Amazon) are perfect examples of non-physical markets.

Answer 1

Step 1: Understanding the Concept:
In economics, a "market" is not necessarily a physical shopping mall or a bazaar. It is a system or arrangement that facilitates exchange.
Step 2: Detailed Explanation:
A market is characterized by the following essential elements:
1. Area: It refers to the whole region where buyers and sellers are spread out and in contact.
2. Buyers and Sellers: There must be at least one buyer and one seller for an exchange to occur.
3. Commodity: There must be a specific good or service (like wheat, oil, or haircuts) that is being traded.
4. One Price: There is a tendency for a uniform price to prevail for the same commodity at a given time.
5. Competition: The existence of multiple buyers or sellers creates competition, which helps determine the market price.
6. Communication: Efficient means of communication (like phones or the internet) must exist between parties.
Step 3: Final Answer:
A market is an organizational mechanism where buyers and sellers of a commodity interact to determine its price and quantity of exchange.