Market
Also called: Bazaar, Marketplace · Topic: Scarcity, Choice and Economic Systems · NCERT: Class 6, Ch 13 "The Value of Work"; Class 7, Ch 12 "Understanding Markets"; Class 9, Ch 8 "Building Blocks in Economics: The Problem of Choice"; Class 12, Ch 1 "Introduction (Microeconomics)"
Meaning
A market is an institution, meaning an organisation with a purpose. It is a set of arrangements through which economic agents freely exchange what they own or what they produce. It does not need a physical place. In a market, prices act as signals. When buyers want more of a good, its price rises, and the higher price tells producers to make more.
Example
A market can be a village chowk, a super bazaar, a telephone call or a website. When demand for a good rises and its price goes up, producers see the higher price and expand output.
Don't confuse with
- Marketplace: A marketplace is a physical location such as a mandi. A market is the wider arrangement for exchange and can work entirely online or over the phone.