What is a market? Must a market have a single physical location?
What will be an ideal response?
A market is any arrangement that allows buyers and sellers to get together and transact their business. Although some markets have a physical location, such as a farmers' market where buyers and sellers of fresh corn can meet face-to-face, markets do not require an actual location. Indeed, many markets, such as the local market for apartments, do not have a single physical location. Nonetheless, buyers and sellers (tenants and landlords) arrange purchases and sales (the rental of apartments and houses) through means other than meeting in one central location.
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When the Fed increases the money supply, it leads to lower interest rates
Indicate whether the statement is true or false
In the model of perfect competition,
A) all firms earn zero economic profit in the long run. B) all firms use the lowest-cost technologies. C) all firms take the prevailing market price as given. D) all participants fully exhaust any potential gains from trade. E) all of the above occur.