Which of the following statement(s) is/are correct?

Statement 1: A market refers to a physical place where buyers and sellers meet to exchange goods and services.

Statement 2: A market can also refer to a mechanism through which products and services are exchanged without the necessity of a physical meeting.

1. Only Statement 1 is correct
2. Only Statement 2 is correct
3. Both statements are correct
4. Both statements are false

Both statements are correct

Reason — In common language, a market refers to a physical place like a haat, bazaar or shopping mall where buyers and sellers meet. However, in a wider sense, a market is a mechanism through which products and services are exchanged, sold and transferred — even when buyers and sellers transact through telephone, internet or other means without meeting each other. Hence both statements describe valid concepts of a market.