Market according to time:
Marshall categorized market based on the time element. In economics “time” does not refer clock time. This means just the division of time depend on extent of adjustability of supply of a commodity for a specified change in its demand. The main divisions are of very short period, and long period.Very Short Period:
Very short period refers to the kind of competitive market in which the supply of commodities can’t be modified at all. Therefore in a very short period, the market supply is completely inelastic. The price of the commodity based on the demand for the product only. The perishable commodities such as flowers are the best illustration.Short-period:
Short period refers to that time period in which supply can be adjusted to a restricted extent by modifying the variable factor only. The short period supply curve is quite elastic. The short period cost is determined by the interaction of the short-run supply and demand curves.Long Period:
Long period is the period of time during which the supply conditions are completely able to meet the fresh demand conditions. In long run, all (i.e., both fixed and also variable) factors are variable. Therefore the supply curve in the long run is perfectly elastic. Hence, it is the demand which influences the price in long period.
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