Q.What is meant by a market-period (very short-period) market? Give an example.

Time-based classification looks at how much a seller's supply can be adjusted in response to price, and the market-period market is the extreme case where it cannot be adjusted at all. …

The classification of markets by time is based on how far the quantity supplied of a good can respond to a change in its price within the period being considered. At one extreme lies the very short-period, or market-period, market, in which the total quantity available for sale is essentially fixed, because there simply is not enough time for sellers to produce any additional units, no matter how attractive the price becomes. In such a market, price is determined almost entirely by the strength of demand, since supply cannot respond at all in the short time available. A day's catch of fresh fish brought to a local market is a classic example: once the boats have returned and the catch is what it is, no more fish can be produced that day regardless of how eager buyers are, so the price for that day's supply is driven mainly by how much buyers are willing to pay for the fixed quantity on offer. This differs from a short-period market, where existing capacity can be us …

Students often confuse the market-period market with the short-period market. Remember that in the market-period market supply is completely fixed (zero response), while in the short-perio …