Why Markets Are Needed

Why Markets Are Needed
Why Markets Are Needed

Video: Why Markets Are Needed

Video: Why do financial markets matter? 2022, December
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Markets have existed all over the world, at all stages of the development of society. The fair, the bazaar, the market attracted many people; for some, the trip there served as entertainment, even a holiday.

Why markets are needed
Why markets are needed

The market has several very important functions - informing, pricing, mediating, regulating, stimulating, and healing. The entrepreneurship possible in a market economy creates more jobs, more goods and services, more growth and advancement. The whole market is built on what the buyer wants, not what the business has to offer. A salesperson who understands the desires and needs of people is lucky. Therefore, the market is sensitive to your needs. The value of a product on the market is determined based on how much the buyer is willing to pay for it. Very often, manufacturers seeking to sell their products are willing to reduce prices or change sales patterns. The government can intervene in the market if there is a shortage, market distortion, monopoly, controlled or oligopolistic market. In some cases, it can pass new laws, raise taxes, introduce licensing. This does not always lead to an improvement in the situation. The free market should be open - this increases the assortment, intensifies competition, and lowers prices. All of this is beneficial to the shopper; you are all shoppers in the markets and in stores that influence the production of goods and services. Therefore, weekend fairs, where agricultural producers export their products; and bazaars where grandmothers-pensioners sell all sorts of little things; and permanent markets, where you can find anything you want, are important for determining your customer demand. For some people, markets are especially attractive - they love the process of trading, communicating with savvy sellers. They are attracted by the brightness and variety of products offered, the feeling of a holiday, fair calls and persuasions. Children are always looking forward to a trip to the market to beg for some trinket. Adults are the same children, only big, therefore they use bazaars and fairs for their own entertainment, along the way acquiring a few necessary things.

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