Between Market Price and Normal Price: points of
distinction/difference between market price and normal price are
as follows: Market price is the price which prevails in the
market at, any particular moment due to the temporary
equilibrium of the forces of demand and supply. The normal price
on the other hand, is the price which tends to prevail in the
market in the long run. it is the result of long run equilibrium
between demand and Market price is the result of temporary
causes and passing events which influences demand and supply or
both; whereas normal price is affected by persistent and
permanent causes in the long run. The market price oscillates
round the normal price. Market price is the actual price which
prevails in the market at any particular moment but this is not
the case with the normal price. The normal price in actual
practice seldom prevails in the market, because in the long run
a change takes place either in demand or in supply conditions.
In fact, the long run normal price like tomorrow