Question

Choose the correct option.

Statement 1: The potential buyers and sellers must be physically present in the market during transaction.

Statement 2: According to economics, a market must be a geographic location and must exist physically.

Statement 3: Both sellers and buyers must be aware about the demand of products, consumer choices, preferences, fashion trends, etc.

• A. Statements 2 and 3 are true.
• B. Statements 1 and 3 are true.
• C. Statements 1 and 2 are true.
• D. Only statement 3 is true.

Answer 1

The correct option is D Only statement 3 is true.

A market is not restricted to one physical or geographical location. It covers a general wide area and the demand and supply forces of the region.

There must be a group of buyers and sellers of the commodity to constitute a market. They may not be physically present in the market during the transaction, but there must be a business relationship that must be established between these two parties.
Both the sellers and buyers must have knowledge about the market. There should be an awareness of the demand for products, consumer choices, preferences, fashion trends, etc.