Never give up

NEVER GIVE UP

No individual buyer or seller is in position to influence the price by his behaviour the price is determined by the interaction of the aggregate demand and supply of the whole industry the main cause of its presence of very large number of both buyer and seller in the market their number is so large that an individual buyer or seller loses his significance his position is just like a drop in the ocean each seller sells only a very small proportion of the total supply it is so small that any change in the supply will have no bearing on the total supply similarly EA via by only a very small proportion of the total quantity of the product available in the market is demand is only e a very small part of the total market quantity of product available in the market is demand is only a very small part of total market demand any change in the quantity demanded by an individual will not affect the total demand in this way both buyer and seller cannot influence the market price individually both buyer and seller have to adjust their buying and selling activities according to the prevailing market price however by forming a group both buyer and seller can influence the price but such a situation oven of the important condition of perfect market namely there should not be any agreement or conclusion amongst both buyer and seller will be violated and the market will no more be termed as a perfect market further more The Other condition of the perfect market namely perfect of the production free entry and exit of the perfect knowledge and perfect mobility amongst the buyer and seller perfect mobility among the factor of production and absence of transformation cost also ensure that only a single price can prevail in the market and no buyer or seller in the position to influence the price by his action