Market is mechanism or institution, which bring closer together to seller and purchaser of goods or services where both deal on agreed price.
CLASSIFICATION OF MARKET
Markets my be classified.
1- On the basis of area as local, national and world markets
2- On the basis of time, as market price on any particular price, long-period price , or secular markets covering a generation.
3- On the basis of nature of competition obtaining therein as perfect markets & imperfect markets.
PERFECT AND IMPERFECT MARKETS
Perfect market is defined as Goods/services are similar in characteristics but different in shape, color, size, flavor, pack.
Imperfect market is defined as Goods and services of various qualities , where purchaser feel difficulty in choice.
TYPES OF MARKET:
- Consumer goods market
- Whole sale
- Producer goods market
- Retail stores
SIZE OF MARKET
In the case of some commodities , the market is very wide covering the whole country or even the whole world whereas in certain other cases the size of the market is very limited covering a small village. The size of the market depends upon several factors:
- Character of the commodity: In order to have a wide market a commodity must be
- Suitable for sampling, grading and exact description and
- Such as its supply can be increased.
- Such commodities are wheat, gold, government securities etc… Bulky articles like bricks and perishable articles like fresh fruit and vegetables have a narrow market.
- Nature of demand : A commodity which is in universal demand e.g gold and silver) will have a wide market Means of Communication & Transport: The size of the market depends upon the extent to which means of communication system has enable commodities to carried long distance and establish wide contact.
Market also depend on Peace & Security, Currency and Credit System, Policy of the State , Degree of division of labour.