Market is the sum total of all the buyers and sellers in the area or region under consideration. The area may be the earth, or countries, regions, states, or cities. People meeting for the purpose of trade by private purchase & sale and usually not by auction.
It may be a physical entity, or may be virtual. It may be local or global, perfect and imperfect. The value, cost and price of items traded are as per forces of supply and demand.
Features of Market
- In economics, the term market will refer to one commodity or a set of commodities. For example, a market for coffee, for rice, for TV’s, etc.
- A market is not restricted to one physical or geographical location. It covers a general wide area and the demand and supply forces of the region.
- There must be a group of buyers and sellers of the commodity to constitute. And the relations between these sellers and buyers must be business relations.
Classification
- On the basis of Time
- On the basis of Geographic location
- On the Basis of Nature of Transactions
- On the basis of Regulation
