Goods And Services Market Flashcards, test questions and answers

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What is Goods And Services Market?

Goods and services markets are two separate markets that determine the prices of goods and services for businesses, as well as individual consumers. Goods are tangible items that can be bought and sold, such as food, clothing, appliances, furniture, computers and cars. Services are intangible activities provided to individuals or businesses by another party such as doctors and lawyers.The price of goods is determined by the forces of supply and demand within the market. If there is a large number of buyers seeking a particular good or service with few suppliers available to provide it then prices will be driven up due to competition among buyers for limited resources. Conversely if there is an abundance of suppliers with few buyers then prices will drop accordingly in order to attract more customers. For example during a recession people may opt to buy cheaper versions of items they would normally buy at higher prices when economic conditions improve.The price of services is also affected by supply and demand but may also be impacted by other factors such as location, quality level offered or even the experience level of the service provider themselves. For example if a doctor offers high quality medical care in a desirable location then their fees may command premium pricing compared to competitors located in less attractive areas who offer similar levels of care but at lower cost due to lower overhead costs associated with running their practice from an area with fewer patients available for treatment. Goods markets tend to produce more stable pricing than services markets because goods have a finite shelf life which means they must eventually be sold regardless of current market conditions whereas services do not have this limitation so pricing can easily fluctuate based on customer demand at any given time making them more susceptible to rapid changes in market dynamics than goods-based products do. As technology continues advancing so too does our ability to access both goods and services online which has helped create even greater competition between sellers driving down prices while simultaneously creating new opportunities for businesses seeking ways to expand their customer base beyond traditional brick-and-mortar outlets into digital realms where shoppers have become accustomed to finding better deals than what they could find offline when buying similar products or services locally.