CONCEPT «MARKET» IN ECONOMIC THEORY

  • S. M. Temnenko State Scientific Research Control Institute of Veterinary Medicinal Products and Feed Additives, 11, Donetska str., Lviv, 79019, Ukraine
Keywords: MARKET, DEMAND, SUPPLY, PRICE, COMPETITION.

Abstract

The essence of the market as an economic category was analyzed in the article. Interpretation of the "market" concept by the classics of economic thought as well as by modern domestic and foreign scientists was considered. The evolution of scientific knowledge regarding the depth of understanding and difference of approaches to the interpretation of this economic category was traced.

The market as an economic phenomenon has emerged as a result of such socio-economic processes as production and exchange. In the process of forming economically independent business entities, there was a transition from direct commodity exchange to more complex economic relations, such as buying and selling. The relationship between sellers and buyers gradually became more complex and multilevel. The concepts of supply and demand appear in economic theory, emerges a basic tenet of economics about the market as the main mechanism for establishing optimal proportions between production and consumption.

Thus, over time, the understanding of the "market" has transformed from a narrow interpretation as a platform where purchase and sale takes place to a complex mechanism that regulates economic relations in the process of production and distribution of resources and public goods.

An analysis of modern publications has shown that modern discourse on the nature of the "market" significantly expands the semantics of this concept. In our opinion, the thesis about the "market" - as a sphere of realization of human freedom, and about the person - as central and most important subject of market, is extremely interesting. In this regard, the age-old controversy of economists over the freedom of the market and the expediency of state intervention in the relationship between sellers and buyers, producers and consumers is gaining new arguments.

Often, modern market definitions are rather cumbersome and difficult to understand, therefore we offer a more concise definition of the market as an economic environment, which serves as a coordinating mechanism where producers, sellers and consumers interact in a competitive environment, and as a result of such interaction a general equilibrium of prices is formed.

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Published
2020-06-01
How to Cite
Temnenko, S. M. (2020). CONCEPT «MARKET» IN ECONOMIC THEORY. Scientific and Technical Bulletin оf State Scientific Research Control Institute of Veterinary Medical Products and Fodder Additives аnd Institute of Animal Biology, 21(1), 222-227. https://doi.org/10.36359/scivp.2020-21-1.27