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  Definition of Market

Meaning and Definition of Market:

Market usually means a place or a geographical region, where buyers with money and sellers with their goods assemble to exchange goods for money. In Economics market refers to a grouping of buyers and sellers who include in the transaction of commodities and services.

Characteristics of a market:

1. Presence of sellers and buyers of the commodity.

2. The establishment of contact among the sellers and buyers. Distance is of no deliberation when buyers and sellers could contact each other via the available communication system such as agents, telephone, letter correspondence and Internet.

3. Buyers and sellers deal with similar commodity or variety. As the market in economics is recognized on the basis of the commodity, resemblance of the product is very necessary.

4. There must be a price for the commodity sold and bought in the market.

 

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