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Interests of buyers

Buyers intend to buy the necessary goods and to realise the plans Consumption with probably high utility (a maximisation principle Utility).

Alignment of interests

Alignment of interests occurs through the price which is formed by Supply and demand interactions. The price equalises a parity of demand and

Offers are represented also by the compromise between representations of sellers and

Buyers about the prices.

Thus, the market is an economic process, which through The offer and demand leads to price education.

Market process occurs in any markets. Depending on

Exchange subject distinguish the markets of factors and the commodity markets (fig. 3.3).

The markets of factors

The markets of factors are called so because it is a question of factors Manufactures - the earth, work and the capital.

In the market of the ground areas and the real estate there is a trade The built up and vacant ground areas, office and inhabited

Buildings. The offer and demand for the real estate are published in newspapers.

The brokers specialising on the real estate, also represent itself as

Intermediaries at the conclusion of contracts of purchase and sale or rent of premises.

Fig. 3.3. Market structure

The human labour is offered and is bought on a labour market. Here,

For example, concern labour exchange and announcements of hiring in newspapers. The offer

Labour depends on a population, its age structure and from Wages level. The labour demand depends not only from

Wages, but also from the prices for interchangeable factors of manufacture. In

The present wages to a lesser degree is result Supply and demand interactions on a labour market; it represents more likely

Itself result of negotiations between the parties in the collective labour contract

(Trade unions and associations of businessmen).

The market of the loan capital is the market of long-term credits and Capital investments. Loans, mortgages, credit securities here concern

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