CA Foundation · Business Economics · Price Determination in Different Markets
When a market is classified on the basis of area, which of the following is an example of a local market rather than a national or international market?
The market for fresh vegetables such as spinach is a local market. Perishable and bulky goods cannot be carried far without spoiling or high cost, so they are sold within a limited area. Gold, crude oil and shares have wide national or international markets.
- AMarket for gold bullion
- BMarket for crude oil
- CMarket for fresh vegetables such as spinachCorrect
- DMarket for shares on a stock exchange
Explanation
Perishable, bulky goods like fresh vegetables are generally traded within a limited area, so their market is local. Gold, crude oil and shares are traded widely across regions or countries, forming national or international markets.
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