ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -It can be said that a market is the process by which the prices of goods and services are established. The prices also get adjusted within the buyer and seller to get the optimal price of the product. Markets facilitate trade and enable the distribution and resource allocation in a society.

Detailed explanation-2: -Definition: A market is defined as the sum total of all the buyers and sellers in the area or region under consideration. The area may be the earth, or countries, regions, states, or cities. The value, cost and price of items traded are as per forces of supply and demand in a market.

Detailed explanation-3: -Markets use prices as signals to allocate resources to their highest valued uses. Consumers will pay higher prices for goods and services that they value more highly. Producers will devote more resources to the production of goods and services that have higher prices, other things being equal.

Detailed explanation-4: -In a market system, resources are allocated to their most productive use through prices that are determined in markets. These prices act as a signal for buyers and sellers. Most economies are mixed economies that lie between these two extremes.

Detailed explanation-5: -In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.