market economics

Market economics is the study of how goods and services are produced, bought, and sold in a marketplace. It involves the interactions of buyers and sellers whose decisions influence prices and the allocation of resources. When demand increases and supply remains steady, prices tend to rise, encouraging producers to create more. Conversely, if demand drops or supply increases, prices usually fall. The system relies on competition, innovation, and consumer choice to set efficient prices and ensure resources are used where they are most valued. Overall, market economics explains how individual actions help coordinate economic activity in a society.