Definition of Market:
A market is a set of conditions in which buyers and sellers meet each other for the purpose of exchange of goods and services for money.
Elements of Market:
The essential elements of a market are:
(i) Presence of goods and services to be exchanged.
(ii) Existence of one or more buyers and sellers.
(iii) A place or a region where buyers and sellers of a good get in close touch with each other.
Types of Market Structure (Market Model):
Markets are classified according to the number of firms in the market and by the commodity to be exchanged. The economists on the basis of variation in the features of market, describe four market models (market structure):
(i) Perfect Competition.
(ii) Pure Monopoly.
(iii) Monopolistic Competition.
In the analysis of each market model (market structure), it is examined as to what determines the equilibrium price, output and profit levels for the individual firm and for the industry.