Market cannot be classified rigidly. Explain this statement.
Answers
Answer:
When we talk about a market we generally visualize a crowded place with a lot of consumers and a few shops. People are buying various goods like groceries, clothing, electronics, etc.
Answer:
Local Markets: In such a market the buyers and sellers are limited to the local region or area. They usually sell perishable goods of daily use since the transport of such goods can be expensive.
Regional Markets: These markets cover a wider are than local markets like a district, or a cluster of few smaller states
National Market: This is when the demand for the goods is limited to one specific country. Or the government may not allow the trade of such goods outside national boundaries.
International Market: When the demand for the product is international and the goods are also traded internationally in bulk quantities, we call it an international market.
On the Basis of Time
Very Short Period Market: This is when the supply of the goods is fixed, and so it cannot be changed instantaneously. Say for example the market for flowers, vegetables. Fruits etc. The price of goods will depend on demand.
Short Period Market: The market is slightly longer than the previous one. Here the supply can be slightly adjusted.
Long Period Market: Here the supply can be changed easily by scaling production. So it can change according to the demand of the market. So the market will determine its equilibrium price in time.
On the Basis of Nature of Transaction
Spot Market: This is where spot transactions occur, that is the money is paid immediately. There is no system of credit
Future Market: This is where the transactions are credit transactions. There is a promise to pay the consideration sometime in the future.
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