Question
Which one of the following expresses the relation
between normal price and market price?Solution
Market price is that price which prevails in a market on a single day or on very few days. It is a very short-period price which prevails at a particular me. On the other hand, normal price is that price which tends to prevail in the long-run. It is a price which has a tendency to prevail over a period of me. Since market price caters the inflation, therefore, it is greater than normal price. Hence, A is the right answer.
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