How the market is formed

Today, the concepts of “market” and “market economy” are perhaps one of the most common economic categories. And it is not surprising, because, as world experience shows, this is the most effective form of organizing the economic life of society.

What is a market?

The history of this concept has deep roots. The market was born during the formation of a primitive society, when the exchange between communities became regular, acquired the form of commodity barter and began to be carried out at a certain time in a certain place. Crafts and cities developed, trade expanded and markets began to secure certain places (retail space). This definition of the market has survived to the present day, but only as one of its meanings.

In modern economic theory, the concept of the market has expanded to understand it as an element of the reproduction of the aggregate social product. From this point of view, the market is a rather complicated formation, which, on the one hand, represents the sphere of exchange and the totality of sales transactions, and on the other hand, provides the relationship between the manufacturer and the end user, that is, the continuity of the reproduction process, its integrity.