Market Analysis — Flashcards

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A market is a mechanism that brings together buyers and sellers to carry out transactions of goods and services. It can be a physical place like a vegetable market or an online platform like e-commerc…

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Markets are classified by time into three types: (1) Very short-run market – supply is fixed, especially for perishable goods; (2) Short-run market – supply can be slightly increased by changing varia…

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Area-based markets are classified by the geographical reach of the product: (1) Local market – goods sold near production area, e.g., vegetables; (2) National market – available across the country, e.

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Perfect competition is a market structure with a large number of buyers and sellers trading identical (homogeneous) products at a price determined by the market. Firms cannot influence the price and a…

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1. Large number of buyers and sellers; 2. Homogeneous products; 3. Free entry and exit of firms; 4. Perfect knowledge of market conditions; 5. Perfect mobility of factors of production; 6. No selling …

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Because there are many firms selling identical products, no single firm can influence the market price. The price is determined by overall market demand and supply, so each firm must accept the prevai…

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Price is determined at the point where market demand equals market supply. This is called the equilibrium price. For example, if at ₹30, quantity demanded = 50 kg and quantity supplied = 50 kg, then ₹…

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Equilibrium price is the price at which the quantity of a good demanded by consumers equals the quantity supplied by producers. At this point, there is no surplus or shortage in the market.