Explain the chain of markets its formed
Answers
MARKET - A market form where there are many sellers but a single buyer is called monopsony. In such a set up, since there is a single buyer against many sellers; the buyer can exert his control on the sellers. The buyer in such a form has an upper edge over the sellers.
Types of Markets
Physical Markets - Physical market is a set up where buyers can physically meet the sellers and purchase the desired merchandise from them in exchange of money. Shopping malls, department stores, retail stores are examples of physical markets.
Non Physical Markets/Virtual markets - In such markets, buyers purchase goods and services through internet. In such a market the buyers and sellers do not meet or interact physically, instead the transaction is done through internet. Examples - Rediff shopping, eBay etc.
Auction Market - In an auction market the seller sells his goods to one who is the highest bidder.
Market for Intermediate Goods - Such markets sell raw materials (goods) required for the final production of other goods.
Black Market - A black market is a setup where illegal goods like drugs and weapons are sold.
Knowledge Market - Knowledge market is a set up which deals in the exchange of information and knowledge based products.
Financial Market - The exchange of liquid assets (money) is called a financial market.