Imperfect market

  (Note: market imperfection is not synonymous with market failure.

See market failure for a distinction) One in which the following conditions, necessary for

a perfect market, do not hold: (1) a homogeneous product, (2) a large number of buyers

and sellers, (3) there is freedom of entry and exit for buyers and sellers, (4) all buyers and

sellers have perfect information and foresight with respect to the current and future array

of prices; (5) in relation to the aggregate volume of transactions, the sales or purchase of

each market agent are insignificant, (6) there is no collusion amongst buyers and sellers,

(7) consumers maximize total utility and sellers maximize total profits, (8) the

commodity is transferable.  If any one of conditions (1) to (8) are not fulfilled a market is

to some degree imperfect.

Import substitution

  Establishing domestic industries behind tariff and quota barriers.

The objective is to replace imports by domestic production.

Income

  The amount of funds, goods, or services received by an individual, corporation,

or economy in a given time period.

Inferior good: 

This a good or service on which less money is spent as ones level of

income increases.  An example is small grains (millets and sorghums) in urban areas.  As

the income of a household increases less money is spent on small grains for consumption

and more money is spent on rice or maize.

Inflation

  The general increase in the price level of all goods and services in an economy

from one period to another.

.

Law of demand

  The widely accepted view that, other things being equal, more of a

good will be bought the lower is its price, and the less will be bought the higher is its

price.

Market 

 Any context in which the sale and purchase of goods and services takes place.

There need be no physical entity corresponding to a market. See section 2.3 for more

information about what a market is and what activities they perform.

Market distortions

: These are government policies or practices by marketing agents that

result in an unclear signal between the producers and consumers.

Market failure

  The inability of a system of private markets to provide certain goods

either at all or at the most `optimal' level. In general, market failure arises because of (1)

non excludability and/or (2) non rival consumption of a good. Non excludability means

that individuals who have not paid for a good cannot be prevented from enjoying its

benefits because the cost of doing so would be too high. If a good is non rival, its

consumption by one person does not preclude its enjoyment by anyone else. Clean air is

an example of a good that has both non rival and non excludable characteristics.

Marketing board, marketing parastatal

  Semi private government office that manages

commercial and usually security stocks.

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