only education

1. Puran sahu pgdm second year
Market structure, force, price
determination , demand & supply

2. What is market ?
 The meaning of market is “a public place
,open space or a building, where people
meet to buy and sell goods”.

3. Component of a market
I. Goods commodity or service.
II. Buyers
III. Sellers
IV. Interaction between buyer and seller. interaction
should be about business
V. Demarcation of area may be a place, region,
country or global
VI. The existence of price uniformity or competition is
not necessary.

4. CLASSIFICATION OF THE MARKET
 Freedom of interaction
 Time span
 Area
 Nature
 Public intervention
 Accrual of marketing merging

5.  1. Perfact market -
a. Perfect competition, a theoretical market
structure that features no. Example – financial
market stock exchange , currency market –bonds.
b. imperfect market –
 Monopolistic competition, a type of imperfect
competition such that many producers sell
products or services . Examples – restaurants,
professions – solicitors, etc., building firms –
plasterers, plumbers, etc.
 Oligopoly, in which a market is run by a small
number of firms that together control the majority

6.  Duopoly, a special case of an oligopoly with two firms
 Monopoly, where there is only one provider of a
product or service.

7. 2. On the basis of time
 Very short period market
 Short period market
 Long period market
 Permanent market

8. 3. On the basis of area
 Area coverage
• village market
• Taluka market
• Regional market
• National market
• Global market

9. 4. The basis of location
 Village market
 Primary market
 Wholesale market
 Terminal market
 Seaboard market

10. 5. People served
 Urban market
 Rural market

11. DEFINATION OF MARKET STRUCTURE
 ORGENIZATIONAL CHARACTERISTRICTES of
a market which influence nature of competition
and pricing and affect the conduct of business
firms

12. Components of market
structure
 Degree of integration
 Concentration of power
 Flow of market information
 Degree of product differentiation
 Conditions of entry of firms in the market

13. Market Structures
 Type of market structure influences how a firm
behaves:
 Pricing
 Supply
 Barriers to Entry
 Efficiency
 Competition

14. MARKET FORCES ?
 The forces which contribute in determining the
prices in a market directly or indirectly are called
market forces. The forces are classification into
two broad categories
1. Tangible forces
2. in tangible forces

15. PRICE
DETERMINATIO
N IN
MARKETS

16. Definition price determination
 Interaction of the free market forces of demand
and supply to establish the general level of price
for a good or service.

17. How can the price of tacos change?
Changes in demand can be caused
by –
• Change in consumer incomes
• Changes in the price of substitutes
• Changes in the price of compliments
• Changes in testes
Changes in supply can be caused
by
• Changes in price of output

18. EQUILIBRIUM PRICE
DEFINED
 The equilibrium price of a good is:
 a price at which quantity supplied equals quantity
demanded.
 a price at which excess demand equals zero.
At the equilibrium price there is no net tendency for
price to change.

19. Excess demand exists when, at
the current price, the quantity
demanded is greater than quantity
supplied.
Excess supply exists when, at the
current price, the quantity supplied
is greater than the quantity
demanded.

20. Market price & demand
Kinked Demand Curve
Price
Quantity
D = elastic
D = Inelastic
£5
100
Kinked D Curve

21. PROJECTION OF
DEMAND AND
SUPPLY OF FARM
PRODUCT

22. Projection of demand
 The projections of demand and supply in
agricultural produce is a planning approach. In a
vast country like india , arriving at demand and
supply projection is not easy .

23. Supply projection
 Supply projection in a short range period for a
one or teo year can be done with existing data on
hand and knowledge base.
 seasonal product
 Climatic conditions
 Regional conditions

24. THANK’S