MARKET

MARKET

WHAT DO WE UNDERSTAND NY THE TERM MARKET?

              Economists have defined market as an area where buyers and sellers, come in contact with each; other by any means of communication in order to determine the price of a product through the farces of demand and supply. Market area is not restricted. It can be the smallest area e.g. a village, or the largest area e.g. the international area in marketing.

MEANING OF MARKET:

     “Originally”, Says Jevons, “a market was a public place in town where provisions and other objects weie exposed for sale; but the word has been generalized so as to mean any body of persons who are in intimate business relations and carry on extensive transaction in any commodity. A great city may contain as many markets as there are important branches of trade, and these markets many or may not be localized……. But the idea of locality is not necessary. The trader may be spread over a whole town, or region, or a country and yet from a market, if they are, by means of fairs, meetings, published prices lists, the post-office or otherwise, in close communication with each other”.
        In the words of Cournot, a French economist, “Economists understand by the term market not any particular market place in which things are bought and sold but the whole of any region in which buyers and sellers are in such free intercourse with one another that the price of the same goods tends to equality easily and quickly.”
      Thus, the essentials of a market are:
a) A commodity which is dealt with;
b) The existence of buyers and sellers;
c) A place, be it a certain region, a country or the entire world;
d) Such intercourse between buyers and sellers that only one price should prevail for the same commodity at the same time.
OR

DEFFINATION OF MARKET:

 A collection of homogeneous transactions. A market is created whenever potential sellers of a good or service are brought into contact with potential buyers and means of exchange is available. The medium of exchange may be money or barter. Exchange agreement are reached through the operation of the laws of supply and demand, in traditional economics (Marshall, A) a market is characterized by a single prevailing price for commodities of uniform quality (law of one price). This is not necessarily the same as the business view – the market is a collection of selling opportunities; or the legal view; where the market is a trading zone free of artificial restriction on transaction. Price system; single market