- Buyers market:
Ø It creates imbalance within the buyers and sellers
Ø When supply>demand, then price is low and this condition is called buyers market.
Ø In this imbalance condition, buyers are more beneficiaries.
Ø It creates the scope of bargaining of the buyers.
- Sellers market:
Ø It creates imbalance within the buyers and sellers
Ø When demand>supply, then price is high and this condition is called sellers market.
Ø In this imbalance condition, sellers are more beneficiaries.
Ø It creates the scope of bargaining of the sellers.
- Broad market:
Ø A broad market means that many buyer and seller are in the market at same time.
Ø It is also called the large scale market.
Ø This market is relatively easy to establish the price of a commodity and a seller is easy to find a buyer.
Ø This market has the capacity to fulfill the certain demand of the people.
Ø For example- if 25 buyers and sellers are active in a residential neighborhood containing 500 houses, it would be a broad market.
- Thin market:
Ø A thin market means that small numbers of buyers and sellers are in the market at the same time.
Ø It is also called the small scale market.
Ø This market is relatively tough to establish the price of a commodity and a seller can not to find a buyer easily.
Ø This market has not the capacity to fulfill the certain demand of the people.
Ø For example- if 1 or 2 buyers and sellers are active, it would be considered a thin market.
No comments:
Post a Comment