DIFFERENT KINDS OF MARKET

DIFFERENT KINDS OF MARKET

        Generally market can be divided into four types. These kinds of markets are according to the following:

1)      TIME

2)      SPACE

3)      COMMODITIES

4)      COMPETITION

(i) EXPLANATION OF MARKET ACCORDING TO TIME: Market can be classified into three main categories according to time.

        i.            Very short period market.

      ii.            Short period market.

    iii.            Long period market.

(1) VERY SHORT PERIOD MARKET:  this type of market usually deals with the sale and purchase of perishable commodities e.g. agriculture products. In this particular case the products or the demand for them is said to be relatively elastic, as a small change in price leads to a big change in the demand for them. In very short period market e.g. weekly bazaar etc. the supply of products remains fixed and in this case, demand plays the dominant role in determining the price.

(9) SHORT PERIOD MARKET: A short period market is one that exists for a few months approximately. In this due to the fact that all factors of production are variable. Supply can be increased by the firms e.g. by increasing the number f shifts etc. and this case both demand and supply play their role to determine the price. Supply is inelastic i.e. supply is less than unity.

(3) LONG PERIOD: In the long period market the prices of the products generally do not change much. This is due to the fact that all factors of production are variable. Hence, supply is elastic and is greater than unity. Supply of the products can be adjusted in accordance with the demand for them. Therefore, prices are generally stable.

(ii) KINDS OF MARKETS ACCORDING TO SPACE: This kind of market can be broken in four categories:

1)      Local market.

2)      Regional market.

3)      National market.

4)      International market.

(1) Local market: An example of this type of market is the one which prevails in rural areas. This type of market works in a small capacity and does not get involved with major marketing firms e.g. provision stores selling varieties of commodities in various amounts as required by each consumer. The prices of the products sold here are quit flexible, so the buyer and seller have a better understanding. This type of market can also prevail in urban areas.

(2) REGIONAL MARKET: It is a market that prevails in a region. For example, in Pakistan we have four provinces which are also known as regions. Here, consumer goods and services are sold at prices which are standardized.

(3) NATIONAL MARKET:  In the market commodities are supplied in accordance with the demand of the consumer throughout the whole country. An example is a market which is involved in distributing agriculture products, e.g. wheat market in Pakistan.

(4) INTERNATIONAL MARKET: This type of market is usually related with large scale production. the supply of the product is shared by various countries of the world. Nationally the supply of these products is monopolized by one or a number of countries e.g. in the case of oil countries like Saudi Arabia, Kuwait and other Middle East countries can determine the optimum prices of the products. However, the prices of these products are not stable in the sense that they depend on many other factors like political stability, discovery of substitutes etc.