Market- a social system through which the sellers purchasers of a commodity or service can

interact with each other.

 They can participate in sale and purchase.

 Market does not refer to a particular place or location.
 Refers to an institutional relationship between sellers and purchasers
 Market can be differ from another one due to difference in number of buyers, sellers,
nature of the product, over price, availability of information, conditions of supply.

CLASSIFICATIONS OF MARKET

AREA TIME COMPETITION FUNCTION COMMODITY LEGALITY

Local Very short Perfect Mixed Product Legal
Regional Short Imperfect Specialized Stock Illegal
National Long Sample Bullion
International Very long Grading

Economists classify markets according to conditions that prevail in them. They are perfect
competition, monopolistic competition, oligopoly, and monopoly.

Market structure- interconnected characteristics of a market, such as the number and relative
strength of buyers and sellers, degree of freedom in determining the price and the forms of
competition.