The term ‘market’, as used by economists, is an extension of the ancient idea of a market as a place where people gather to buy and sell goods. In former days part of a town was kept as the market or marketplace, and people would travel many kilometers on special market days in order to buy and sell various commodities. Today, however, markets such as the world sugar market, the gold market and the cotton market do not need to have any fixied geographical location. Such a market is simply a set of conditions permitting buyers and sellers to work together. In a free market, competition takes place among sellers of the same commodity, and among those who wish to buy that commodity. Such competition, influences the prices prevailing in the market. Prices inevitably fluctuate, and such fluctuations are also affected by current supply and demand. Whenever people who are willing to sell a commodity contact people who are willing to buy it, a market for that commodity