Question

Dan missed class the day the professor covered the circular flow model. Dan asked his friend Joan to explain markets to him. Joan correctly stated that a market _______.A) must include a written contract between buyers and sellers.B) requires a physical location for buyers and sellers to get together.C) must have many buyers and only one seller, who is willing to sell to all the buyers.D) is only a place to purchase groceries.E) is any arrangement that brings buyers and sellers together.

Answer 1

is any arrangement that brings buyers and sellers together.

Step-by-step explanation:

A market refers to any place where two or more people gather with the intention of conduction economic transactions. It is any place that facilitates the exchange of goods and services between people. A market brings together buyers and sellers of a particular product or various products.

A market can be a physical location where buyers and sellers meet face to face. It can be a virtual place such as through the internet where there is no physical contact. Markets are not restricted to transactions by legal tender. A place where the exchange of goods and services is through barter trade or other media acceptable to the buyer and seller is a market.

Markets can take different forms depending on their specialty. For example, the securities market deals with stocks and securities. A market may also refer to a group of buyers or potential buyers of a particular product.