In a very short period market :

Question

Accepted Answer

The correct option is 2:
The term "very short period market," often referred to as the "market period" or "momentary period" in economics, refers to a time span so brief that producers cannot change the total quantity of the commodity supplied. In this period, all factors of production are fixed, and the output already produced (the stock) is the maximum possible supply available in the market. Consequently, the supply curve in the very short run is perfectly inelastic (vertical). Any change in market price is driven entirely by shifts in demand, as suppliers are incapable of adjusting their production level or stock to match the new demand, making supply perfectly fixed.

The incorrect option is 1:
Demand is fixed. Demand, in the context of the market period, is generally assumed to be variable and responsive to factors like consumer preferences or external events. If demand were fixed, price would also remain unchanged, contradicting how price changes occur in the market period.

The incorrect option is 3:
Price is fixed. Price is the element that adjusts the quickest to bring the fixed supply and the variable demand into equilibrium in the very short period. Since supply is fixed, any shift in demand must necessarily lead to a change in the market price.

The incorrect option is 4:
Both the demand and supply are fixed. As established, while supply is perfectly inelastic (fixed) during this period, demand is highly flexible and subject to immediate market forces. If both were fixed, there would be no reason for the market to fluctuate or for any transaction to occur outside of a predetermined equilibrium.