NCERT solutions for class 12 Economics Determinants of Market
Economics online classes : Online classes for Economics are available at Takshila Learning. These Economics online classes along with economics notes make you learn at your own pace and at a time convenient to you. CBSE Class 12 Economics classes have been recorded in an easy way with complete graphs and tables to understand the concept.
Takshila Learning is also bringing to you some theoretical knowledge in the form of blogs and write-ups. The following blog carries detailed information about “Determinants of Market” from Class 12 Economics.
A market is a whole of the region in which buyers and sellers of a commodity are in close contact and perform the function of sale and purchase of a commodity.
DETERMINANTS OF MARKET
The following features determine the structure of a market:
- NUMBER OF BUYERS AND SELLERS
This is significant because it helps in predicting whether a single buyer or a single seller is capable of influencing the price of the commodity in the market. The degree of influence on the price depends upon the share of the buyer’s demand in the total demand and the share of the seller’s supply in the total supply of a commodity in the market.
- NATURE OF THE COMMODITY
In case the commodity is homogeneous or identical in nature, it will bag the same price in the market. On the other hand, if the commodity in question is heterogeneous of differentiated in nature, the same commodity is sold at different prices by different sellers ( e.g. tomato ketchup of different brands).
For the detailed explanation of Determinants of Market, click on Economics notes for Class 12.
- MOBILITY OF GOODS AND FACTORS
If there is no mobility (i.e. freedom of movement) of goods and factors of production of a commodity, the sellers charge different prices for the same commodity in different parts of the market.
- PERFECT KNOWLEDGE
Uniformity in the price of a commodity in different parts of the market will prevail if the buyers and sellers have complete and perfect knowledge about the prices and costs of goods in the market. This will actually give rise to competition in the market.
You can read previous article Economics Notes CBSE Class 12 Exceptions To The Law Of Demand
Follow us on a Social media