Question

What are the different types of Markets in Economy? Name them.

Answer 1

Types of Markets -

Markets can be divided into several categories.

 

Product Market and Money Market :

In a Product Market sale and purchase of goods takes place while in a Money Market lending and borrowing of money is done. Long term money market is called the Capital Market.

 

Local, State Level, National and International Market :

When the sale and purchase of goods and services takes place at a local level, it is called the Local Market. When it is done at the state level, it is a State Market, when sale and purchase extends to the entire country, we call it the National Market. When the buyers and sellers belong to different countries and the sale and purchase extends beyond the national boundaries, it is called an International Market.

 

Short-term and Long-term Market :

When the demand and supply and price determination in a market is in a short-run then we call the Short-term Market, and when supply and price determination is on a long term basis we call it the Long-term Market.

 

       In market classification, most important classification is on the basis of degree of competition. In economic analysis this classification is most important because market price determination is dependent on this classification. From this view-point, the markets are ordinarily divided into following main categories.

(a) Perfect Competition Market

(b) Monopolistic Competition Market

(c) Oligopoly Market

(d) Monopoly Market

Some authors prefer to call monopolistic and oligopoly markets as imperfect competition market.

Product Market and Money Market :

In a Product Market sale and purchase of goods takes place while in a Money Market lending and borrowing of money is done. Long term money market is called the Capital Market.