Forms of Market — Economics STD 12 Commerce / Arts — Question

1. A short period is one during which the stock of a commodity can be changed to some extent.
2. This is done by changing the quantity of variable factors like labour and raw material.
3. Supply can be slightly adjusted to the change in demand.
4. Demand plays more important role in determining the price.
5. This period is usually upto 8-10 months.

Long Period:

1. A long period is one during which the stock of a commodity can be fully changed.
2. This is done by changing the size of the plant because all factors are variable.
3. Supply can be fully adjusted to the change in demand.
4. Supply plays more important role in determining the price.
5. This period is usually form 1 year to 4-5 years.