why are factor markets important 
a market economy can t exist without three interdependent components the factor market at one end the goods and services market at the other end and in between the producers the companies that create the products we use the producers obtain what they need in the factor market produce finished products and sell them to end users the end users by their actions create and sustain demand for raw materials that are then made available by the factor market in order to supply the producers this is known as derived demand 3the factor market responds to demand and the cycle continues 