Question

1. Provide some examples of markets in which you participated, or will participate in, today. How often were you a buyer/demander? How often were you the sell/supplier? How would a change in price have affected your choices? please give me more details

Answer 1

Some examples are the market for groceries, fruits and vegetables that are of perfectly competitive market structure, where I have been participating in the past as well as on a regular basis. Another market is of FMCG products that has a monopolistic competitive nature. Here, I have been participating, but less often than the market for groceries, fruits and vegetables. As a buyer or demander, I am more often to be in the market to buy goods and services and its frequency is very high for market of  groceries, fruits and vegetables, along with the presence as a buyer in FMCG products, but with less frequency. It is due to the reason, that FMCG products are processed, come with longer shelf lives, unlike fruits and vegetables that are raw and can lose its freshness in a day or two.

As a seller, I am not present at all in the market of FMCG products, due to lack of capacities. But, I am seasonally present in market for groceries as a seller when my agricultural products come to the market. It is on a seasonal basis, after harvesting of the crop is completed.

As a buyer, increase in price, causes decrease in quantity demanded and vice versa, but my demand curve is steep as groceries and fruits, vegetables are essential products and my demand is relatively inelastic in nature. As a seller, I am a price taker and I go with the market to sell my products. A higher price, can fetch me higher profit, before other players enter the market. So, profit making is for a short period of time in this market as a seller.