When economists describe "a market," they mean:
A)a place where stocks and bonds are traded.
B)information networks that allow individuals to keep in touch with each other.
C)a hypothetical place where the production of goods and services takes place.
D)a mechanism which coordinates actions of consumers and producers to establish equilibrium prices and quantities.

Question

Quizplus · Accepted Answer

Economists use the term market to refer to the mechanism that coordinates the actions of buyers and sellers to establish prices and quantities of goods and services. This can happen in physical locations like stock exchanges or through online platforms, but the essential feature of a market is the interaction between consumers and producers. The concept of a market encompasses not just the exchange of goods and services, but also the information that participants use to make decisions and the institutions and regulations that govern their behavior.

When Economists Describe "A Market," They Mean