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Market Equilibrium — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsMarket Equilibrium2 Marks
Question
Make a difference between market price and normal price.
✓

Answer

Market Price It is the price that exists in the market at a particular point of time, no matter, forces of supply and demand have adjusted themselves or not. Normal Price It is the price that is expected to exist when the forces of demand and supply have fully adjusted themselves. Market price always tends to move around the normal price as shown in the given figure.

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