Energy Education

Market: Difference between revisions

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[[File:Market-SDcurve2.png|350px|thumbnail|right|Figure 1. Supply and demand interact in a market to create an equilibrium price and quantity of a [[goods and services | good or service]].<ref>Wikimedia Commons. (May 14, 20156). Market Curves [Online]. Available: https://commons.wikimedia.org/wiki/File:Supply-demand-equilibrium.svg</ref>]]
[[File:Market-SDcurve2.png|350px|thumbnail|right|Figure 1. Supply and demand interact in a market to create an equilibrium price and quantity of a [[goods and services |good or service]].<ref>Wikimedia Commons. (May 14, 20156). Market Curves [Online]. Available: https://commons.wikimedia.org/wiki/File:Supply-demand-equilibrium.svg</ref>]]
<onlyinclude>A '''market''' is where buyers and sellers exchange [[goods and services]].</onlyinclude> This market can be physical or virtual and is usually defined by the whatever is exchanged;<ref>D. Rutherford. ‘’Routlege Dictionary of Economics’’. London: Routlege, 1995, pp. 286.</ref> for example [[petroleum]] is exchanged on the [[oil market]]. Usually, markets are good for society because these transactions allow people to get the goods and services that they want. These goods and services are exchanged for [[currency]], information, or just other goods and services. Anything that someone values can be exchanged in a market, but today usually a buyer is paying money for a seller else to provide something. The way that buyers and sellers interact in the market determines the how much will be provided (the [[supply]]) and how badly these goods and services are wanted (the [[demand]]). The interaction between supply and demand of the goods and services will determine the [[market value]] (the [[price]]) and quality amount that will be sold.
<onlyinclude>A '''market''' is a medium which facilitates the exchange of goods and services between buyers and sellers. A market can be physical or virtual and is defined by the different [[goods and services]] exchanged in it.</onlyinclude><ref>D. Rutherford. ‘’Routlege Dictionary of Economics’’. London: Routlege, 1995, pp. 286.</ref> For example, [[petroleum]] and petroleum products are exchanged on the [[oil market]].


==Types of Markets==
A market facilitates the transactions between two or more parties who exchange goods and services, most often: [[Currency |money]], information, or anything of value to the selling party. The interaction of buyers and sellers in the market determines the [[supply]] and [[demand]] of the goods and services being exchanged (see Figure 1). Therefore, the [[market value |price]] and quality of the goods is also determined.


There are two main types of markets today and when referring to the whole market of a country, one can refer to it as the [[economy]], meaning the general position of the government towards their economy. The two main types are [[mixed economy | mixed economies]] and [[market economy | market economies]]. In addition there are [[centrally planned economy | centrally planned economies]] in which the government has total control, although there are very few if any of these economies today. Canada's economy is a mixed economy.
There are many types of markets, they can big or small, local or global, general or specific, legal or illegal and a number of other variations. For example, within the [[commodity]] market there is an [[oil market]] where oil is bought and sold globally through a computer network (digital market). In comparison, gas stations represent physical markets, where the buyer will trade currency for [[gasoline]] at an established price.


== A Note on Markets==
===Examples of Specific Markets:===
 
There are many types of markets, they can big or small, local or global, general or specific, legal or illegal and of a number of other variations. For example, with in the [[commodity market]] there is an [[oil market]] where oil is bought and sold around the world through a computer network, this is an example of a digital or electronic market. In contrast, a gas station is an example of a physical market where hard goods are traded, one puts [[gasoline]] in their vehicle and trades currency to buy the gasoline at a determined price. 
 
===A Few Examples of Specific Markets:===
*Oil Markets
*Oil Markets
*Commodity Markets  
*Commodity Markets  
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*Media Markets
*Media Markets


==Market Failure==
==For Further Reading==
''Click [[Market failure|here]] for the main article''
 
When a market fails to function properly, that is, it does not have a [[pareto efficiency | pareto efficient]] equilibrium; the market is said to be [[market failure|failing]]. This is due to a number of possibilities such as [[externality|externalities]], imperfect competition, misallocation of public goods and other factors.<ref>J.Black, N. Hashimzade, and G. Myles. (2009) ‘’A Dictionary of Economics’’, 3rd ed. [Online], Available: http://www.oxfordreference.com.ezproxy.lib.ucalgary.ca/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-1219?rskey=1ao9sr&result=1 [14 May 2016]</ref> This occurs because there is a net external social cost which is in opposition to the idea that markets are efficient when all transactions benefit society in a positive way.<ref>A. Goolsbee, S. Levitt and C. Syverson. ‘’Microeconomics’’. New York: Worth Publishers, 2013, pp. 644.</ref> For more information, see [[market failure]]. When the inefficiencies in a market become so great that supply cannot meet demand or it cannot correct for an externality to a sufficient level then the market has ceased to function properly. 


==See Also==
* [[Market economy]]
*[[Market economy]]
* [[Mixed economy]]
*[[Mixed economy]]
* [[Market failure]]
*[[Market failure]]
* [[Supply]]
*[[Supply]]
* [[Demand]]
*[[Demand]]
* Or explore a [[Special:Random|random page]]


== References ==
== References ==
{{reflist}}
{{reflist}}
[[Category: Uploaded]]

Latest revision as of 20:55, 2 July 2026

Figure 1. Supply and demand interact in a market to create an equilibrium price and quantity of a good or service.[1]

A market is a medium which facilitates the exchange of goods and services between buyers and sellers. A market can be physical or virtual and is defined by the different goods and services exchanged in it.[2] For example, petroleum and petroleum products are exchanged on the oil market.

A market facilitates the transactions between two or more parties who exchange goods and services, most often: money, information, or anything of value to the selling party. The interaction of buyers and sellers in the market determines the supply and demand of the goods and services being exchanged (see Figure 1). Therefore, the price and quality of the goods is also determined.

There are many types of markets, they can big or small, local or global, general or specific, legal or illegal and a number of other variations. For example, within the commodity market there is an oil market where oil is bought and sold globally through a computer network (digital market). In comparison, gas stations represent physical markets, where the buyer will trade currency for gasoline at an established price.

Examples of Specific Markets:

  • Oil Markets
  • Commodity Markets
  • Financial Markets
  • Currency Markets
  • Media Markets

For Further Reading

References

  1. ↑ Wikimedia Commons. (May 14, 20156). Market Curves [Online]. Available: https://commons.wikimedia.org/wiki/File:Supply-demand-equilibrium.svg
  2. ↑ D. Rutherford. ‘’Routlege Dictionary of Economics’’. London: Routlege, 1995, pp. 286.
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