Question

Define market and briefly discuss the characteristics of a good market

Answer 1

Market is defined as a means through which the buyers and sellers are brought together to help them in the transfer of goods/services for money or any other assets. A market need not have a physical location. The characteristics of good market include a. There should be accurate and timely information on the prices and volumes of the completed transactions. b. There should be enough liquidity in the market. In other words, the asset can be bought or sold immediately at a price that is closer to the previous transaction unless any new information or news is received. c. The transaction costs should be less and should be negligible when compared to the actual value of the contract. The transaction cost also includes the brokerage cost and the cost of transferring the asset. d. The price should include all the factors and news and should adjust quickly to the new information. There should not be any lag.

Answer 2

Answer:

Market is a place where the changing of good and services between buyer and seller.

The characteristics of Good Market are as follows:-

●Good market has always better connection of consumers (buyers).

●Good market always attached with nearby local areas and nearby local industries.

●Good market has more buyer and sell to exchange their goods and services.

Explanation:

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