A Discussion on Perfect and Pure Competition of Market

Perfect Competition can be categorized as:

Large number of buyers and sellers:

A market runs on large number of buyers and sellers. Single firm is not able to affect the market supply or the market price. Similarly, there are large numbers of buyers also in market. Even the buyers can’t influence the price by changing their demand because each buyer and seller is like a drop in the ocean.

Homogeneous product:

Homogeneous product is known as the most important feature. According to it, product, which these large number of buyers buy from large number of sellers are identical or we can say perfect substitute. That means if one buyer increase the price, the buyer will buy it from other sellers as the products are identical e.g. rice.

Free entry and exit of firms:

We can take an example to clarify the term. An entrepreneur, who has enough capital and still can start the business and enter the industry and any one who is incurring loss can stop the production and exit the industry.

Firms are price takers:

If there are many buyers and sellers, nobody can influence the price or the supply in the industry. They are just like the drop in the ocean.

No cost of transportation:

In the perfect competition it is assumed that cost of transportation does not exist.

Now we should talk about perfect and pure competition. Perfect competition has all the features of pure competition and some more features. The first three features given under perfect competition constitutes pure competition whereas perfect competition has the features of pure competition and two more features they are perfect knowledge about the market and perfect mobility of inputs and output. Market of competition comes through profit maximization concept.

Property market also runs on the same concept of perfect and pure competition in the modern market. Now, market is not a place where we sell or buy a thing. Now, market is services also where third party takes an entry such as – finance market, property market etc.

Concept of Market Equilibrium Theory in Market Demand

Market equilibrium is able to show interaction between the demand and supply. “Equilibrium” is Latin word, which means equal balance. It means there is no tendency to move.

Equilibrium of demand and supply:

Take here interaction between demand and supply. Demand and supply are always depended on price for commodities. Equilibrium price is the match of price of quantity demand and quantity supply. Equilibrium quantity is buying and selling products on equilibrium price. Here is a diagram to represent market equilibrium:

Equilibrium of Demand and Supply

Equilibrium Price:

There is a graph to show equilibrium price of market. Here, supply is P2 S2. There is excess demand of S2 D2. Due to competition in buyers, the price increases and reaches OP.

Equilibrium Price

Market equilibrium:

If there are no changes in demand or supply then equilibrium will go on so long. At first, we should take the change in the demand curve and assume that the supply curve remains shame. For example – if the shift in demand curve is due to change in income.

Market Equilibrium (Shift in demand curve)

Let’s take a view of shift in the supply curve also and assume that the demand curve remains constant.

Market Equilibrium (Shift in supply curve)

At last, in the market equilibrium, everyone who wants to sell, finds a buyer and everyone who wants to buy, gets a seller. This happen when, the market reaches equilibrium when the buyer finds a willing seller and seller finds a willing buyer. This tendency of market to reach equilibrium is not just theoretical, but we can see things happening in our day to day life.

An Introduction of Property on Wheels (POW) in Real Estate Sectors

Property on Wheels (POW) is a single vendor program across the India in Commercial area of the Real estate. The program has been launched by PropertySensex as a new Model in property business. The Main goal behind the property on wheels (POW) is to improve customer services in buying & selling sectors.

Property on Wheels (POW) 0% brokerage for buyers only

Property on Wheels is a type of car that is GPS (Global Positioning System) Activated. Any individual client can call at the company across the India to buy a property. As client calls, backend call center note down all the client requirements and see the property on wheel nearby client on the site and dispatches the requirement to the local POW manager. There is not a driver in POW car while there is a manager that will drive a car with quotation of property. POW manager shortly contact to the client and describe the all information to the client -

1. Rate Card of Concerned Area.
2. Location Map.
3. Profile of Company.

Across the India the company has promoted single calling number for the customer’s convenience. The backend call center will receive all calls centralized to take up customer requirements. The charge will be paid by the Company itself.

This is a national level service in real estate sector. You will get this property on wheels in all cities where the company has operation with same number only for buyers not for sellers.

If you want to purchase a flat or flat on rent and you want to the flat at nearby your children school or you want to flat nearby the airport or metro station, the company manager will take you for site visit as per your requirement and also conduct a meeting with the owner of the property at free of the cost.

These all cars are company owned cars with a manager who will take client for property visit as per their requirements. The site visits are free of costs.