Question

Which of the following best describes the concept of a market?

a) The demand that exists among potential customers for a product
b) The collection of suppliers and their goods and services
c) A specific geographic location where goods are sold
d) The stock exchange where companies trade their shares.

Answer 1

A market is an arrangement where sellers and buyers conduct economic transactions, encompassing both supply and demand to determine the equilibrium price.

Step-by-step explanation:

The concept of a market can best be described as an arrangement that brings sellers and buyers together for economic transactions. This involves both the supply, which is the total amount of goods and services offered for sale at various prices, and the demand, which is the total amount of goods and services consumers are willing to buy at various prices. The specific place where this interaction happens can vary; it could be a physical location or a more abstract space, like an online platform. The market embodies the interaction between potential buyers and sellers; it's a combination of demand and supply that ultimately determines the equilibrium price, where the quantity supplied matches the quantity demanded in the market.

Answer 2

Answer: The best description of the concept of a market among the options provided is:

b) The collection of suppliers and their goods and services

A market encompasses not only the demand from potential customers but also includes the suppliers offering goods and services, creating an environment where buying and selling take place. It's a space or mechanism where buyers and sellers interact to exchange goods, services, or resources.