Market - Avishkumar Patel Prof Mahfuz R Chowdhury Eco 12...

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Avishkumar Patel Prof. Mahfuz R. Chowdhury Eco 12 Sep, 29, 2008 Assignment : Define a market, and identify and explain how different market forces determine the price of a product and service, and explain how elasticity influences the market. Market is the basic of economics; half of it covers the whole economics. Market means a place or service where buyer and seller can the trade in terms of money is called market. For example if America need software and they place a order to India for the software just on phone then it is called market, even if a small boy buy a PS2 game station from another kid then it is also called market. Market doesn’t mean that trade done at any specific place or by a specific person. It can be done anywhere in the world, buying and selling of product from anywhere to anywhere, it can be done by anyone and it can be done through anything like internet, phone or by meeting face to face. Market includes consumers, producers, price, quantity, supply and demand. Now let’s define all contains of the market. Consumer, it is a person who consume products or service from the market to fulfill his basic need and also to fulfill the desires. Everyone in the world is the consumer because everyone consume the products from the market whatever is available, whether he consume to survive or to make life more comfortable or royal or anything. Producer means the person who produces the product or service and brings them into the market to sale it with the terms of money and to earn profit. Producer always look for more profit and less production cost. The person, who provides service is also producer, they produces service to serve consumers. Price is the main thing of demand and supply. Price means the total cost of production of a product plus margin of the producer, in other words profit of producer for that particular product. Price is
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the value of that particular product in terms of money of a particular product for the consumer to buy that product. Price is determined by the whole market. Even the producers are producing the goods and service, and then also the price of that thing is determined by the consumer, producer, government, etc. Demand Every people have different desire to have materialistic happiness, but such kind of desire doesn’t mean demand. If a bagger think and says that he want Mercedes Benz, then it cannot be said that he has a demand of Mercedes Benz. Demand means a strong desire of a person to have that thing with the capability of money to afford that thing and with willingness to buy that thing. If Bill Gates has a desire to buy Mercedes Benz with the willingness to buy it, then it can be said that he has a demand of that car. Demand can be measure in different types such as Market Demand and Quantity Demand. Market
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Market - Avishkumar Patel Prof Mahfuz R Chowdhury Eco 12...

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