The document defines a market as a place where buyers and sellers meet physically or virtually to conduct transactions. A market has buyers and sellers of a commodity, with one price determined by supply and demand. Markets can be classified by area (local, regional, national, international), time period (short, long), level of competition (perfect, imperfect), function (general, specialized, sample-based, grade-based), nature of commodity (products, stocks, bullions), and legality (legal, illegal). The size of a market depends on factors like the nature of demand, durability and portability of goods, availability of substitutes, and multi-use potential of products.

1. MARKET

2. Definition
Generally market is the place where buyers and
sellers are physically present and finalize the
transaction.
• Prof Stonier and Prof Hague:-
By a market economist mean any organization
whereby buyers and sellers of a goods are kept in
close touch with each other.

3. Features of Market
• One Area:- Denote to a area or a region in which
no of buyers and sellers are scattered. They are
connected with one another via brokers, agents,
letters. Etc.
• Buyers and Sellers:- Buyers and Sellers are
must for market. In Transaction Physical Presence
is not necessary.
• One Commodity:- For the existence of a market
there should be at least one commodity like Wheat,
vegetables, etc and the market is termed as wheat
market, vegetables market and so on.
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4. CONT
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• Perfect Competition:- Acc to
Prof. Coornot, market must
posses the characteristic of
perfect competition where in
buyers and sellers are free to
enter in the market.
• One Price:- In Perfect
competition between buyers
and sellers. The market area
should have one price only.

5. Factors Affecting the Size and Extent of
Market.
The Size and extent of market is affected by the
following factors:-
1.Characterics of commodity:-
a. Nature of Demand
b. Durability
c. Portability
d. Cognigability
e. Sampling and grading of goods.
f. Adequate Supply
g. Substitutes.
h. Multi Uses.

6. Classification of Market
Area
1. Local
2. Regional
3.National
4.Internati
onal
Time
1.Very
Short
2.Short
3.Long
4.Very long
Competit
ion
1.Perfect
2.Imperfect
Function
1.Mixed
2.Specialized
3.Sample
4.Grading
Commo
dity
1.Product
2.Stock
3.Bullion
Legality
1. Legal
2. Illegal

7. On the basis of Area/Region.
1. Local Market- When buyers and sellers are
limited to an area or region then the market is
called local market.
2. Regional Market- When buyers and sellers are
concentrated to a certain region/area. The area is
wide then the local market.
3. National Market- When the demand of a
commodity is limited the boundary of the
country.Eg. Market of Gandhi cap , Nehru Cap.
4. International Market- When the demand of a
commodity crosses the boundary of a country.

8. On the basis of Time Element
1. Very Short- Supply of a Good is limited. Cannot
increase the supply. Demand determines the
price of such commodities.
2. Short Period- Production can be increased.
Demand plays an important role in price
determination.
3. Long Period- Supply can be adjusted to the
quantity demanded. Supply plays an imp role in
price deter. Also called Normal Price.
4. Very long- Both demand and supply can be
changed. Demand Inc with the inc in tastes,
habits, fashion etc. and Supply inc with the inc in
variable inputs.

9. Market based on competition
• Perfect Market- Where there is
Homogeneous products. Free Entry
and exit from market of a firm.
of market
mobility of
Perfect knowledge
condition, and perfect
factors of production.
Where
• Imperfect-
competition is not in
perfect
existence.
Number of buyers and sellers are
small. No perfect Knowledge of
market conditions. There is no single
price in this market.

10. On the basis of Functions
• Mixed/General market- Where all types of good
are bought and sold. Found in cities.
• Specialized market- Where particular
commodity is sold, e.g. vegetables, food grains
cloths etc.
• Marketing by Samples- When goods are
bought and sold on the basis of samples. E.g. Oil
seeds, raw cotton.
• Marketing by grades- When the goods are
graded then different buyers and sellers deal in
such goods on the basis of their grades.

11. On the basis of nature of comodity
• Product Market- Where particular
product is bought and sold. E.g. Agri
product sold in agri market (krishi
Mandi).
• Stock Market- Market where
stock and shares, bond, securities
debentures etc are bought and sold.
• Bullion Market- Market where
Silver and Gold are bought and
sold. In this market metallic trading
takes place.

12. Market based on legality
• Legal Market- Where legal Transactions
of goods and services take place.
Recognized by the Govt. Also called fair
market.
• Illegal market- Where high prices are
charged what have been fixed by the Govt.
Happens when supply is short. Business
earn profits by indulging in Black Marketing,
Smuggling. Hongkong market is an illigal
market.

13. Market Structure