She of lite Market
In the case of some commodities, the market is try wide covering the whole country or even the whole world, whereas in certain other cases. the size of the market is very limited covering a small village, The size of the market depends upon several factors: In order to have a wide market, a commodity must be (il portable: (i,) durable; tiii t suitable for sampling, grading and exact description; and such as its supply can be increased. Such commodities are wheat, gold, government securities, etc. Bulky articles like bricks and perishable articles like fresh
fruit and vegetables have a arrow market.
Market for Consumers’ goods, which are retail markets, arc less perfect. Retail prices differ appreciably in different localities. Producers’ goods are, as a rule, purchased wholesale; the markets for such goods arc more perfect. Labor market is mostly imperfect. This is due to the comparative immobility of labour, their weak bargaining power and the ignorance that generally prevails in labor circles. The market for real estate is relatively perfect. Owing to big amounts involved, the buyers take a lot of trouble before they make a purchase. , In the money market, the rate of interest vries according to the risk of default and the period of the loan. Hence, money market may be regarded as imperfect. It is especially so in India.