Goods markets are markets in which companies and households interact to buy and sell the output of goods and services. In this market, households act as buyers, while companies act as sellers. This role is the opposite of the factor market, the market where production factors transaction takes place.
Economics classifies items into two:
- Intermediate goods and services
- Final goods and services
Companies sell intermediate items to other companies for the production of other goods and services. Meanwhile, final goods and services are sold to consumers.