Question

Give the difference between Market Price and Normal Price?

Distinguish between market price and normal price.

Answer 1

Sr. No.	Points	Market Price	Normal Price
1.	Time	Determined in the very short period.	Normal price is the long period price
2.	Equilibrium	Market price is temporary	Normal price is permanent.
3.	Profit and Losses	Market price may be less or more than the cost of production.	Normal price is always equal to the average cost of production.
4.	Forces	Market prices are influenced by temporary supply and demand variables.	Normal prices are influenced by persistent influences.
5.	Example	Sudden price rise in vegetables due to rainfall.	Long-term price of wheat based on production cost.