People and
Market
Market is
a place where people gather to buy and sell their commodities. In former days
only some towns had markets; people used to travel many kilometers on special
market-day to buy and sell their commodities. Today, however, nearly every town
or village has its own market; people needn’t travel far to buy their daily
needs such as food, vegetables, fruit and the like.
In a
market there is a demand for certain goods. People have right to offer price
for particular goods. People very seldom heve everything they want; they have
to decide carefully how they spend their money. In this case, essential
commodities come first, then the kind of luxuries that help to be comfortable,
and finally those that give personal pleasure-non essential commodities.
Thus the
personal wants are satisfied by different things. This special characteristic
of satisfying a want is known in
economic as its utility; it is, of course, related to the law of supply and
demand.
Supply of
many commodities can generally be adjusted to suit market condition. This means
that the changes in prices lead to changes in the quantity of a particular
commodity such as the law says in which a rise in price tends to increase
supply; while a fall in price tends to reduce it.
Some
economist back up the law of demand; they reason that a fall in price tends to
increase the demand for a commodity, while a rise in price tends to decrease
the demand. People usually will decide to buy a commodity only with their
particular utility to them.
0 komentar:
Post a Comment
"Terimakasih telah berkunjung di Blog saya semoga bermanfaat"