The+Market

As we have needs 1, we can search goods and services to calm they down in  **__THE MARKET__** //A market is an environment that allows buyers and sellers to trade or exchange goods, services, and information. These interactions define demand and supply characteristics and are therefore fundamental to economies. // A market can be defined as a place where any type of trade takes place. Markets are dependent on two major participants – buyers and sellers. __ Buyers __ and __ sellers __ typically trade goods, services and/ or information. Historically, markets were physical meeting places where buyers and sellers gathered together to trade. Although physical markets are still vital, virtual marketplaces supported by IT networks such as the internet have become the largest and most liquid.



The number of buyers and sellers involved will have a direct bearing on the __ price __of the good or service to be sold, and has become known as the law of supply and demand. Where there are more sellers than buyers, the availability of supply will push down prices. If there are more buyers than sellers, the increased demand will push up prices.

In the market, supply and demand is one of most fundamental concepts of economics and it is the backbone of a market economy. [|Demand] refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. [|Supply] represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand. Ask in your family what are the most important needs they have, in what way they satisfy them. Where do they go to buy? What do they think about prices? Give a brief definition of the underlined words. Prepare a diagram to see how they arrange their choices. media type="youtube" key="3shDwU-Y8G4" height="315" width="420"