A physical or virtual place where goods or services are bought and sold, and transactions between buyers and sellers take place. The overall demand for or interest in a particular product or service.
The word “market” comes from the Latin term “mercatus,” which means “a trading place” or “a place where business is conducted.” It entered the English language through Old English and has been used in its current sense for centuries.
- Closed market
- Out of stock
The new smartphone model quickly captured the market with its innovative features and competitive pricing.
FAQs (Frequently Asked Questions)
What are the types of markets based on the nature of goods?
Markets can be classified into several types based on the goods or services they deal with:
- Goods Market: Deals with physical products like consumer goods, industrial products, and commodities.
- Services Market: Involves intangible services such as healthcare, education, and financial services.
- Financial Market: Focuses on trading financial instruments like stocks, bonds, and currencies.
What factors influence supply and demand in a market?
Supply and demand in a market are influenced by various factors, including consumer preferences, production costs, availability of resources, economic conditions, technological advancements, and government policies.
What is a “bull market” and a “bear market”?
A “bull market” refers to a financial market where prices of assets are rising, indicating optimism and investor confidence. A “bear market” is the opposite, with falling asset prices, indicating pessimism and a lack of investor confidence.
How do businesses conduct market research?
Market research involves gathering information about consumer preferences, buying habits, and competitors to make informed business decisions. Businesses may use surveys, focus groups, interviews, online analytics, and other data collection methods to conduct market research.
What is the role of supply and demand in determining prices in a market?
The interaction between supply and demand largely influences prices in a market. When demand exceeds supply, prices tend to rise, encouraging more supply. Conversely, when supply exceeds demand, prices tend to fall, leading to decreased supply. This continuous interplay results in price adjustments to achieve equilibrium.
Explore A-Z Nouns List: