Question

Discuss the characteristics of a market.

Answer 1

1. Area: The market is not related to any particular place. It spreads over an area, whether large or small, depending on the number of buyers and sellers.
2. Buyers and Sellers: There must be buyers and sellers of the product, and they should be in contact with each other. However, contact does not necessarily mean physical presence. They may establish contact through letters, telephone, e-mail, etc.
3. Commodity: For the existence of a market, there must be a commodity which will be bought and sold by buyers and sellers. We have one market for each product or factor service.
4. Competition: The existence of competition among buyers and sellers is also an essential condition for the existence of a market; otherwise, different prices may be charged for the same commodity.