Market
From Simple English Wikipedia, the free encyclopedia
A market is a place where people go to buy and/or sell things.
When grocers have products that the grocers want to sell, the grocers set up a market place. When goods are marketed, customers buy the goods, and this stimulates the economy.
The market is a good way of balancing supply and demand because prices change quickly to signal what goods are in high or low supply or high or low demand.
[edit] Competition
If a seller of a good cannot supply demand, or charges too high a price, other sellers may try to supply that good.
If other sellers enter the market for that good, in competetion, that will tend to fulfill demand and lower prices.
Sellers do not like competition and may try to kill the competition.
Sellers that kill competition seek to earn profits that they do not deserve, and must be stopped by laws and regulations.
[edit] Apples and apples
Suppose that there are two sellers of apples in competition with one another.
If they compete on price, prices will lower, and neither seller will like it.
But they can reduce competition without conspiring to raise prices:
- sell different kinds of apples (Granny Smith, Pink Lady, Golden Delicious, etc.)
- provide or not provide home delivery
- have different opening hours, one early, one late.
