Features of Market economy : -
- Mutual Exchange - The first and the most important feature of market is mutual exchange . In general, market is based on mutual exchange . In this , either things are given for things , or for money or the services are given for things. If mutual exchange would not be there they would not have been a market.
- Continous Process - Market is continuously changing institution. we can observe any of the society like modern , rural or tribal , market is available.
- Formal Relations - people know very well about shopkeepers of market but their mutual relations are limited to a certain extent. If they have good relations among them , even then they exert a great impact on market rules.
- Medium - Medium of exchange is used according to market rules. This Medium could be in any form like things , money or service . Quantity of goods could be reduced or increased according to value of Medium.
- Relations based on Contact - Relations in market are always based on contact. These relations are always formal. Rules of contact are applicable on all markets in society, relations based on contact are in demand.
Step-by-step explanation:
In the common everyday usage , the word market may refer to particular markets such as fruit, wholesale , vegetable etc . It a system of production of goods to sale .