Meaning of Market
In the ordinary sense, the word ‘market’ refers to a physical place, where commodities and services are bought and sold.
In Economics, the term ‘market’ refers to a system of exchange between the buyers and the sellers of a commodity. Besides direct exchanges, there are exchanges that are carried out through correspondence, telephones, online, email etc. A market has the following characteristic features:
1. Buyers and sellers of a commodity or a service
2. A commodity to be bought and sold
3. Price agreeable to buyer and seller
4. Direct or indirect exchange.