Q.Explain the classification of markets.

A national market exists when the buyers and sellers of a commodity are spread over the entire country and the good is traded nationwide at a broadly uniform price. Durable, widely-demanded and easily transportable goods such as wheat, cement and steel have a national market.

Meaning

When markets are classified on the basis of geographical area, they are divided into local, regional, national and international markets. A national market is one in which the demand for and supply of a commodity extend throughout the country.

Explanation

In a national market, buyers and sellers are located in different parts of the country, and the commodity is transported and traded across the whole nation. Because of good transport and communication, the price of such a commodity tends to be nearly the same all over the country (after allowing for transport costs).

A commodity will have a national market when it is:

• durable and not quickly perishable,
• in wide and general demand throughout the country,
• easily and cheaply transportable,
• of standard and gradeable quality. …

On the basis of area, markets are classified as local, regional, national and international. A national market is one in which a commodity is bought and sold throughout the entire country, so that buyers and sellers across the nation deal in it and a broadly uniform national price tends to prevail.

Meaning

Markets can be classified according to the extent of the area they cover: local, regional, national and international (or world) markets. A national market is one whose extent spreads over the whole country.

In a national market, the commodity is in demand everywhere in the country and is supplied from many places within it, so that buyers and sellers from all over the nation participate. Because of good transport and communication, a broadly uniform price tends to prevail throughout the country.

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In economics a market means any arrangement or set of conditions by which buyers and sellers of a commodity are in contact and carry out exchange at a price; it need not be a particular place.

Meaning

In ordinary language a market means a particular place where goods are bought and sold. But in economics the term has a wider meaning. A market refers to any arrangement, area or system by which buyers and sellers of a particular commodity are in close contact with one another (directly or through dealers, telephone, internet, etc.) and carry out the purchase and sale of that commodity at a price.

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