Market concepts refer to the fundamental ideas that explain how markets operate. These include supply and demand, which describe how the availability of a product and consumer desire for it influence prices. When demand exceeds supply, prices tend to rise, while an oversupply can lead to lower prices. Another key concept is competition, which occurs when multiple businesses vie for the same customers. This competition can drive innovation and improve quality, benefiting consumers. Understanding these concepts helps individuals and businesses make informed decisions in the marketplace, ultimately shaping economic activity and growth.