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Economics miscellaneous

  1. The market price is related to :
    1. very short period
    2. short period
    3. long period
    4. very long period
Correct Option: A

Marshall was the first economist who analyzed the importance of time in price determination. Market period is a very short period in which supply being fixed, price is determined by demand. The time period is of few days or weeks in which the supply of a product can be amplified out of given stock to match the demand. This is possible for durable goods.



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