Difference between revisions of "Market"
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A '''market''', in [[economics]], describes a situation in which [[seller]]s of a [[product]] or [[service]] interact with [[buyer]]s in order to effect [[transaction]]s that are amenable to both parties. The [[Supply and demand|Law of Supply and Demand]] explains how [[price]]s are determined in such situations. | A '''market''', in [[economics]], describes a situation in which [[seller]]s of a [[product]] or [[service]] interact with [[buyer]]s in order to effect [[transaction]]s that are amenable to both parties. The [[Supply and demand|Law of Supply and Demand]] explains how [[price]]s are determined in such situations. | ||
Revision as of 13:33, October 7, 2008
A market, in economics, describes a situation in which sellers of a product or service interact with buyers in order to effect transactions that are amenable to both parties. The Law of Supply and Demand explains how prices are determined in such situations.
There are many political implications involved in real world markets, as it is often thought that interfering in the free movement of goods and services is beneficial to society (or a country or locale) as a whole. Opinions can widely differ, however, on which such regulations are justified, and which ones stifle the economy by interfering with free trade and its concomitant creation of ever-increasing wealth for all.