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The market is the meeting of views between the seller and the buyer, and the market is divided into three types of large markets: the commercial market, the virtual market and the markets in the world of the economy, which itself is branched into other branched markets, and in terms of the destination and the economic concept, the market means any gathering of a group of people who have a relationship for a specific commodity and any place where an exchange is characterized on a commercial scale.
What is the market?
What is the market
In the economic concept, it is mentioned that the market: “is the natural starting point for any economic activity, and the market may express the place or time when the seller meets the buyer.”

What is the market?

The market is defined as the space or place where sellers of goods or services meet with their buyers, whether this meeting is in the same place or through means of communication, and this space can be a village, neighborhood, city, country or region and may include the whole world.

In the classical theory the market is a theoretical place where supply meets demand and prices are determined in the light of the relationship between them.

Markets are divided into different sections according to the purposes they serve. “In terms of their continuity, they may be permanent, such as the stock market, or temporary, such as village markets and fairs, or limited in time (daily markets, weekly markets, etc.), and in terms of their breadth, they may be local, such as markets. Cities (neighborhood markets), or global markets such as the sugar market, and in terms of the types of traded commodities, the markets divide various sections for each commodity or for each group of commodities its market, including real estate markets, foreign exchange markets, agricultural crops markets such as wheat and rice, and markets for industrial products such as iron and steel. machines and others. And in terms of the purpose of using the commodity to the market for production commodities and the market for consumer goods, and in terms of the quantities traded in the market to the wholesale market and the retail market,...etc.

The unit of time and space is not necessary for the existence of a market in the economic sense.

The market is a meeting place, where the offers of sellers meet the demands of customers and where a certain price is determined for a particular commodity.

The market is a method of comparing supply and demand for the realization of the exchange of services, goods or capital.

Supply: Refers to the quantity of goods and services that sellers are willing to sell at a certain price.

Demand: Demand refers to a quantity of goods, services or capital that buyers can and are willing to buy at a certain price, according to their income and inclinations.

Market types

  • Goods and services market
The commodities that are differentiated according to their nature include the following:
  • Consumer Goods Market: Market for vegetables, fruits and meat.
  • Equipment market: such as the agricultural and industrial market (machines and equipment).
  • Intermediate commodity market: such as the oil market and raw materials.

  • Labor market
It is the meeting place of labor force bidders (individuals wishing to work) with job seekers (institutions and departments), such as: the National Employment Agency, the Youth Employment Office.
  • Money Market (Securities)
It is the place where offerors of securities meet with their applicants and is divided into:

Financial market: medium and long-term securities (bonds and shares) are traded
- Money market: where trading takes place for a short-term period, such as: loans, commercial papers, exchange rates and currencies.
  • Market Structures
In capitalist countries, markets for different products are not alike. In some, the number of buyers and sellers is very important, in others, there are only a few sellers... These differences in market structure lead to very different economic behaviours.

Transactions between those seeking and offering goods and services take place on the basis of different prices depending on the type of market in which the particular transaction is formed. And these prices change according to the structure of the market as well.

The markets differ according to the method specified for the price and on the other hand, according to the authority of both the seller and the buyer in determining the price of the transaction.

From this standpoint, we conclude that there are several structures for markets:
  • Old market structure
According to the traditional economists, the market is of two types:
Perfect Competition Market: In this type, the element of perfect competition appears, and the element of monopoly does not appear.
Perfect Monopoly Market: It appears in this type, in contrast to the first type, in which monopoly prevails and the element of competition disappears.
These two types of market are important because they are indispensable to economic analysis.
  • New market structure
Contemporary economists have criticized the old theory of market types and came in their criticism that perfect competition and absolute monopoly are two completely contradictory markets in their structure and between them there are several other types of markets that can be applied to reality to apply the theory.
From their modern perspective, they distinguished between four main markets that will be addressed.
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