Question

what do you understand by the term market in economics. What factors are which determine nature of market?

Answer 1

Explanation:

Market in economics referred to the medium which will allow buyer and seller to meet and exchange their respective product for particular value. This is either physical place or kind of virtual place where buyer and seller can meet and sell and buy their service or product.

Factor that determine nature of market:

Amount of buyer and seller:

Market is decided and get influenced by the number of buyer and seller present and active in market. Market get influenced by the number buyer and seller present in market. It decide how the market decide it nature based on seller and buyer.

Commodity:

Market also get affected by the type of commodity and nature of that commodity, its gets decided the nature of market based on type of commodity.

How freely firm can move in market:

It depend on market what to be in nature, as if there is freedom of entry and exit in market the price will be stable in market and if there is restriction in market for entry and exit there will be price war in market.

Movement of goods and factor of production:

Market also get decided on how the fop can move in market from place to place it will decide the price in market.