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 used 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.

Explanation / Answer

Answer : In an example listed in the question the word " Market " means a system where all buyers and sellers interact with each other through there demand and supply. Market is an arrangement between buyers and sellers where sale of goods and services has been taken place.

From the example and defination we include :

The defination of the market is too broad enough that they applied to all market such as that :

"The market for wheat" shows that features as follows :

" The legal US market for Kidneys"

The market defination is narrow in the sense that some factors are not taken into an account :

If the featues of the market has been changed in the defination than it does not means that market has been changed. The market worked on same operation of demand and supply in perfect competition where as maximum price has been charged in the monopoly.

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