Product and Factor Markets
Product markets refer to the buying and selling of goods and services. This means that producers and firms provide the supply of products and the consumers provide the demand for the goods to be produced.
Factor Markets differ from product markets as it deals with the trading of the factors of production. This means that land, labour and capital are bought and sold by households and firms. Consumers will supply their human, natural and capital resources in exchange for income; firms will then act as the demand side and purchase these resources.
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