- Area:- In economics, market does not mean by any particular place where buyers and sellers meet each other, rather it means the entire area over which buyers and seller are spread and have very close contact with one another.
- Buyers and Sellers: In the market buyers and sellers are required. By any reason one of the two does not exist it can not be called the form of a market. It is very necessary that buyers and sellers should be physically present at the time of bargaining or transaction of the business. Both can establish their contact among them selves on phone, and other mode of communication which are generally made available in the business.
- One commodity : As per the economic term, every commodity / goods has its own market e.g. Wheat market. As many commodities so many market.
- Free Competition :- In the market there should be free competition between buyers and sellers. In a market buyers try to buy at the cheapest rate and the sellers try to sell at the highest rate. Resulted that at last of it there will be one price for one commodity throughout the market.
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