Market
Market
There are many definitions of a market. For example market means a setting in which buyers and sellers agree on engage in exchange, or a market is a set of arrangements through which prices influence the allocation of scarce rosources.
Markets provide enormous amounts of informations used by both sellers and buyers. Sellers let you know, what they have to offer. Buyers provide information about what they want either by buying or not buing the goods.
Goods and services are exchanged primarily on the basis of price information. Prices are determinated by interaction of many buyers and sellers in markets and reflect relative values of goods, resources. Prices also ration goods and resources among competing producers and competing consumers.
A market works without no one being in charge, without anyone giving commands. Market is directed by “Invisible hand” of self-interest, which guides individuals to use resources efficiently through changes in prices, wages, profits and other rewards.
