This document discusses market structures and price determination. It defines a market as a place where buyers and sellers meet to exchange goods and services. Key components of a market include goods/services, buyers, sellers, and interactions between them. Markets can be classified based on factors like competition, time period, location, and degree of government intervention. Perfect competition and monopolistic competition are examples of different market structures. Price determination results from the interaction of supply and demand in a market. The equilibrium price is where quantity supplied equals quantity demanded. Changes in supply and demand can shift the equilibrium price.

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