Mada za sehemu hiiTheory Of MarketMada 3
- Concept of market
- Classification of market
- Price and quantity Determination in the market
There are several ways of classification of markets. Some of these types are -
- Product market: Deals with selling and buying of final goods. e.g. markets of sugar, rice, beans, etc.
- Factor market: Deals with buying and selling of factors of production. e.g. labor market, capital market, and market for land.
- Financial market: Deals with selling and buying (exchange) of currencies. The currencies are being sold and bought. e.g. market for foreign currency in Bureau de change.
- Local market: This occurs when a commodity is produced and sold around the area of its production. e.g. local brew like "mbege" is sold around the areas of its production.
- National market: It occurs when a commodity is bought and sold within the country e.g. a commodity which faces a national market is soap found throughout Tanzania.
- International market: It occurs when a commodity is bought and sold in many countries of the world e.g. medicines fetch international market.
- General market: This type of market occurs when various commodities are bought and sold at any specific area. e.g. we can say Kariakoo is a general market.
- Specific market: It occurs when only one kind of commodity is being bought and sold at a particular place. e.g. Dar es Salaam stock Exchange (DSE) where shares are only bought and sold.
- Grading market: This is a type of market which occurs when any commodity is bought and sold according to its grade.
- Day to day market: This type of market which occurs when the price of any commodity is determined according to demand and supply conditions of that particular day. e.g. Saturday market, Wednesday market, It means supply can be increased beyond the existing stock of that commodity.
- Short period market: It occurs when the price of a commodity is determined according to supply and demand conditions of that short period of time. In the short period a firm can have the variable inputs like labor, raw materials etc. In this case, the supply can't be increased beyond the existing capacity of the present firms.
- Long period market: This kind of market occurs when the price of a commodity is determined according to the long run demand and supply conditions. In the long run period, it is to change the amounts of factors of production such as establishing new firms, construct buildings etc.
Market is based on the buyers and seller (degrees, types of commodities which are differentiated, and if there are some barriers). Based on this classification, markets have the following structures:
- Perfect market structure
- Imperfect market structure
Mwalimu
Unasoma somo hili? Niulize nikuelezee chochote kilichomo.
Ingia ili kumuuliza Mwalimu wa AI wa Sonza kuhusu mada hii.
Ingia ili kuuliza