Overview
Understanding the difference between product and factor markets is essential for grasping basic economic concepts. The product market is where consumers buy goods and services, while the factor market is where resources like labor and capital are exchanged. Both markets are influenced by supply and ...
Key Terms
Example: Buying a smartphone at a store.
Example: Hiring a worker for a job.
Example: The supply of apples in a grocery store.
Example: High demand for video games during the holiday season.
Example: The price of a concert ticket where all tickets are sold.
Example: A person buying groceries.
Related Topics
Supply and Demand
The relationship between the availability of a product and the desire for that product.
beginnerMarket Structures
Different types of market environments, such as perfect competition and monopoly.
intermediateEconomic Systems
How different economies organize production and distribution of goods.
intermediateKey Concepts
Product MarketFactor MarketSupply and DemandEconomic Resources