business 1.2

Market

A physical or virtual space where buyers and sellers interact to exchange goods or services.

Voluntary Exchange

A transaction in which both the buyer and seller willingly trade because each expects to benefit.

Market Price (Equilibrium Price)

The price at which quantity demanded equals quantity supplied, resulting in no shortage or surplus.

Shortage

A situation in which quantity demanded is greater than quantity supplied at a given price.

Surplus

A situation in which quantity supplied is greater than quantity demanded at a given price.

Competitive Advantage

A business's ability to outperform rivals in the same market, leading to greater market share and higher profits.

Differentiated Products

Goods or services with unique features that distinguish them from competitors.

Barriers to Entry

Obstacles that make it difficult for new firms to enter a market and compete with existing firms.

Market Share

The percentage of total sales in a market controlled by a specific firm.

Monopoly

A market structure in which one firm sells a unique product with high barriers to entry and substantial control over price.