class 12 microeconomics market equilibrium under perfect competition Notes
Market equilibrium ....... short and easy notes for the board exam. 1. Relation between market price and normal price. >There are a close relation found between market price and normal price. Market price has changing tendency, which normal price the permanent trade. After every change, market price has the tendency to become equal to normal price. Market price moves up and down around the normal price. 2. Difference between market price and normal price. 3. How price determined under perfect competition? > According to Marshall, price is determined at that point where demand and supply of a commodity become equal. Marshal presented the example of scissor, according to him, both played are essential to cut a piece of paper. Similarly both the force demand and supply are essential in price determination. Price of commodity is determined by both, demand and...