The market is a global concept that does not have a single and clear definition. Many theoretical economists tried to find the ideal designation that would fully reflect the essence of this term, but no one came to the optimal conclusion that would suit everyone. But there is something that unites all these scientists. Each of them argued that market conditions are fully formed by non-price factors in demand for goods and services.
In the mid-nineteenth century V.I. Dahl defined the market as just a place to trade. Since that time, a lot of things have changed in the functioning of the economic sphere of activity of both an individual individual and the country as a whole. Modern economic dictionaries go beyond this framework and give the following designation: the market is all those economic relations that are associated with the exchange of services or goods, as well as with the conclusion of trade transactions. That is, scientists describe it as an abstract, but at the same time real space, inside of which there are non-price factors that influence demand in combination with price regulators. Also of great importance is the proposal, which is calculated for all goods and services produced, including capital, labor and land. This space also includes the methods of interaction between the buyer and seller, which determine the conditions of sale on the market.
Depending on the classification criterion, the following markets are distinguished:
- For goods sold: raw materials, materials, means and resources of production, real estate, consumer goods and services, innovation, currency and jewelry.
- By the scale of the territory covered: zonal, global, regional and domestic, external in relation to a particular country.
- By the nature and volume of sales: retail and wholesale.
- Depending on the level of competition: free (highly competitive), closed (monopolistic), oligopolistic and monopolistic competition. In such markets, non-price demand factors influence.
- By the level of saturation of goods and services: excess, equilibrium and scarce.
- According to the criterion of compliance with current legislation: legal and illegal, that is, shadow.
Today, the market is a form of organizing the effective functioning of the social system of the economy in conditions of mass commodity production, which is able to fully ensure the interaction of production and consumption, as well as the equitable distribution of limited resources in the interests of owners of production and cash.
We already know that the decisive role in the market is played by non-price factors of demand - solvent demand, and the supply of suppliers, namely, so many goods and services that manufacturers can put on the market at existing prices. These concepts work only for individual individuals or firms, how then to assess the ratio of existing goods in all markets of the country and the need for them by consumers?
To this end, macroeconomics introduced such a concept as non-price factors of aggregate supply and demand. They are determined by changes in the technological level of production in the country, the number of consumers of a particular product, the world level of prices for resources and the situation in domestic markets in all sectors. That is, these indicators do not characterize the internal state of the economy, but reveal the general condition of all internal segments of the economy in total. How do these economic categories differ from those considered previously? Everything is very simple - non-price demand factors determine the number of services and goods that any consumer can buy for himself in a particular market. For example, it may be the Honda car market, but the aggregate demand will characterize the amount of vehicles that consumers want to buy in the country (regardless of brand).