MARKET, DEMAND AND SUPPLY

The Concept of Market with respect to Demand and Supply

The Concept of Market with respect to Demand and Supply

The concepts of a market

The term market is a place where all buyers and sellers exchange their goods and services. The core purpose of the market is to facilitate the customers. The customers may access to every product or service in the market. The market is a physical place where parties meet, and unusual transactions take place. In the modern era of globalization, market does not only mean physical places, but it also reflects to the participants and markets which are not physically present. In the present day, transaction can take place without physical presence; it might be through different modes of communication. The modes of communication involve Internet, mobile markets, etc, it must be stated here that markets and services can also be intangible. For example, a bank offers online banking system and provides services through just a click, it is clear from above example that the services offered by the bank involves online services, no physical presence of bank and the customer are necessary.

Today's market may be defined as the virtual place where people meet their demands and supply, based on offers and acceptance, the transaction takes place. Now days, markets not confined to territories, but markets are designed in a way that anyone from anywhere can have access to the market. It also helps both, suppliers and buyers. The supplier can sell his or her product, and service without any territory issue and it has made the life easy. It saves transportation cost and averts other risks. (Henderson, 2010)

Demand

Let us begin our discussion of demand by defining the concept: demand (D), (Qd). Demand is defined as the amount of a product that buyers are willing and able to purchase at all prices. A consumer is said to demand a product if he or she is both willing and able to purchase a product. A consumer who is willing to purchase a product, but is unable to do so, not considered to be part of the market demand because he or she will not purchase the product. Likewise, a consumer who is able, but unwilling to buy a product is also not considered to be part of market demand.

Supply

Supply is defined to be the amount of product sellers are both willing and able to provide to the market at all prices. Key to this definition is that sellers have to be both willing and able to provide the product to the market. A seller who is willing to sell the product but unable to do so is not considered to be part of the supply. He or she will not provide the product to the market. Likewise, sellers who are able but unwilling are also not considered to be part of market supply.

The Role of Price in determining the 'demand' for Health Care Services, and Exceptions

It is a worldly known fact ...