Market Models

Market models are frameworks used to understand how different markets operate and how prices are set for goods and services. They analyze the interactions between buyers and sellers, considering factors like supply (how much is available) and demand (how much people want). Different models, such as perfect competition, monopoly, and oligopoly, explain various market structures and behaviors. By examining these models, economists can predict market trends, the impact of regulations, and the effects of external factors on pricing and availability, helping businesses and policymakers make informed decisions.