Definition and functioning of the market

The market concretely can be interpreted is a meeting place for sellers and buyers, while in economics, understanding the market is much more emphasized in its purchasing and selling activities. Markets can form anywhere and anytime.

To establish a market, it must meet the requirements to shape it.

The terms of the formation of the market

their sellers
their buyer
Their goods or services in sell traded
The agreement between the seller and the buyer

Of the terms above would make sense, right? Not possible if there are no sellers and buyers could be the formation of the market.

function market

Below are some of the functions of the market and an explanation.

1. The distribution function

In the normal distribution, the market function to close the gap between producers and consumers in the transaction. While the distribution function, the market serves to expedite the distribution of goods and services from producers to consumers.

2. The function of price formation

The market serves as the market price, ie the price agreement between sellers and buyers.

2. promotional function

The market is the most appropriate means for event promotion, and implementation of promotion can be done by putting up banners, distributing flyers, share examples, etc.