2. Explain what a market is by writing a single definition of the term \"the mar

Question

2. Explain what a market is by writing a single definition of the term "the market" as it is usd in expressions like "the market for wheat," "the legal US market for kidneys," and "the market for the common stock of a particular US corporation." Explain why your definition is broad enough to apply to all markets, including each of those listed above. Also explain why your definition is narrow enough to exclude things that are not markets. A good definition captures the most essential features that all markets have in common. If a market's characteristics listed in your definition change, we should be able to agree that the market has changed. lurine

Explanation / Answer

A market can be defined as a commercial place where people gather and carry out their day to day transactions. It mainly includes the sale and purchase of goods and services legally allowed by the law of the land. Markets can be related to a specific good like a market for cars or it can be related to several different kinds of goods and services bought and sold at one particular place.

Nowadays markets can be both physically present in brick and mortar form or virtually like online markets.

The above definition is broad enough to include all the goods and services which can be bought and sold in the market like wheat, Kidney, and it also covers virtual markets like online markets and securities market.

IF the main characteristic of the definition is changed i.e. a place where the people collide with their commercial interest to exchange goods and services changes then that place will not remain a market. So, yes, if the characteristics of the above definition are changed the place will not remain a market.

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