Overview
The product and factor markets are essential components of the economy. The product market focuses on the buying and selling of goods and services, where consumers purchase what they need, and producers supply these items. In contrast, the factor market deals with the exchange of resources necessary...
Key Terms
Example: The grocery store is a product market.
Example: Job fairs are factor markets.
Example: A bakery's supply of bread.
Example: The demand for smartphones.
Example: The price of gas stabilizing when supply meets demand.
Example: Land, labor, and capital.
Related Topics
Key Concepts
Goods and ServicesFactors of ProductionSupply and DemandMarket Equilibrium