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market (D4) A medium for exchanges between buyers and sellers.

Some markets are physically located in one place; others connect buyers and sellers by telephone, fax and e-mail, especially in the case of financial markets. Markets for goods and services are termed product markets; for labour and capital, factor markets. There is a linkage between factor and product markets in that the demand for a factor is derived from the demand for its product. Dealers in a market seek to create an EQUILIBRIUM between demand and supply at a particular price. However, the existence of many market imperfections, e.g. MONOPOLY and ASYMMETRIC INFORMATION, distorts markets. A full set of markets must include markets for FUTURES and for risk taking. Markets have also been classified according to whether they are FIXPRICE or FLEXPRICE. market clearing (D0) Adjusting demand and supply to each other until an EQUILIBRIUM is established. To clear, either price or quantity changes can be used. market clearing price (D0) The ruling price in a particular period for which there is sufficient demand to equal the amount supplied, even if there are simultaneous shocks to the economy. Some markets rarely appear to produce clearing prices as they are in DISEQUILIBRIUM for long periods of time, e.g. the labour market where involuntary unemployment and vacancies coexist for long periods of time. market anti-inflation plan (E3) A proposal to keep the general price level stable but individual prices flexible by a system created by legislation which would issue sales rights to firms. These rights would equal current net sales at pre-existing prices, corrected for changes in a firms capital and labour inputs and the average growth in national productivity. Relative prices could change by a firm buying sales rights unused by other firms.