Here is an example answer to the question "Explain what is meant by a market and by sub-markets."

A market is anywhere where buyers and sellers come together to transact with each other. The buyer and seller don't have to be in the same place in order to conduct transactions with each other – many businesses now operate on digital platforms such as Amazon marketplace and eBay. The forces of supply and demand in markets such as agricultural products are crucial in establishing market prices and perhaps reaching an equilibrium i.e. a market-clearing price where supply = demand.

The market for most goods and services can be broken down into sub-markets which tailor to the different needs and wants of groups of consumers. For example the market for new cars might be broken down into the market for electric and hybrid vehicles as well as petrol and diesel-powered cars. In the housing market we can distinguish between residential and commercial property. A global pharmaceutical company might consider sales in each of their submarkets by country.