Question

How the market can be classified on the basis of Economics?

Answer 1

The Market can be classified on the basis of Economics as follows:

• Perfect Market: A market is said to be a perfect market if it satisfies the following conditions:

1. A large number of buyers and sellers are there.
2. Prices should be uniform throughout the market.
3. Buyers and sellers have a perfect knowledge of the market.
4. Goods can be moved from one place to another without restrictions.

• Imperfect Market: A market is said to be imperfect when

1. Products are similar but not identical.
2. Prices are not uniform.
3. There is a lack of communication.