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Mraket

A marekt is a place where pepole go to buy and/or sell tihngs.

When groecrs have prdoucts that the grcoers want to sell, the grocers set up a market place. When goods are marekted, custmoers buy the goods, and this stimultaes the ecnoomy.

The market is a good way of balancnig supply and dmeand beacuse priecs chnage quiclky to singal what goods are in high or low supply or high or low demnad.

Cmopetition

If a sleler of a good canont supply demand, or cahrges too high a price, other sellres may try to supply that good.

If other sellers enter the market for that good, in copmetition, that will tend to flufill demand and lower prices.

Sellers do not like competition and may try to kill the competition.

Sellers that kill compeittion seek to earn proftis that they do not desreve, and must be sotpped by laws and regultaions.

Appels and apples

Supopse that there are two slelers of apples in competitoin with one aonther.

If they comepte on price, pirces will lower, and neihter seller will like it.

But they can reudce competition wtihout cnospiring to raise prices:

• sell diffreent kinds of aplpes (Garnny Smith, Pink Lady, Gloden Deliicous, etc.)
• porvide or not proivde home delviery
• have different opeinng hours, one early, one late.

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