a market system is the economic system that relies on the interaction of buyers and sellers.
a market system is the economic system that relies on the interaction of buyers and sellers.
which economic system relies on the interaction of buyers and sellers?
a market system
market systems are different from voting systems. a market system relies on buyers and sellers being constantly involved and unequally enabled; in a voting system, candidates seek the support of voters on a less regular basis. in addition (a) buyers make decisions on their own behalves, whereas voters make decisions for collectives, (b) voters are usually fully aware of their participation in social decision-making, whereas buyers are often unaware of the secondary repercussions of their acts, (c) responsibility for making purchasing decisions is concentrated on the individual buyer, whereas responsibility for making collective decisions is divided, (d) different buying decisions at the same time are made under conditions of scarcity --- the selection of one thing precludes the selection of another, whereas different voting decisions are not --- one can vote for a president and a judge in the same election without one vote precluding the other, and (e) under ordinary conditions, a buyer is choosing to buy an actual good and is therefore never overruled in his choice, whereas it is the nature of voting that the voter is choosing among potential alternatives and may be overruled by other voters. however, the interactions between market and voting systems are an important aspect of political economy, and some argue they are hard to differentiate; for example, systems like cumulative voting and runoff voting involve a degree of market-like bargaining and trade-off, rather than simple statements of choice.
market system
in capitalist economics, market competition is the rivalry among sellers trying to achieve such goals as increasing profits, market share and sales volume by varying the elements of the marketing mix: price, product, distribution and promotion. merriam-webster defines competition in business as "the effort of two or more parties acting independently to secure the business of a third party by offering the most favourable terms". it was described by adam smith in "the wealth of nations" (1776) and later economists as allocating productive resources to their most highly valued uses and encouraging efficiency. smith and other classical economists before antoine augustine cournot were referring to price and non-price rivalry among producers to sell their goods on best terms by bidding of buyers, not necessarily to a large number of sellers nor to a market in final equilibrium. competition is widespread throughout the market process. it is a condition where "buyers tend to compete with other buyers, and sellers tend to compete with other sellers". in offering goods for exchange, buyers competitively bid to purchase specific quantities of specific goods which are available, or might be available if sellers were to choose to offer such goods. similarly, sellers bid against other sellers in offering goods on the market, competing for the attention and exchange resources of buyers. competition results from scarcity—there is never enough to satisfy all conceivable human wants—and occurs "when people strive to meet the criteria that are being used to determine who gets what".
capitalism