Answer to Question #161644 in Economics for Prashant

Question

Explain the reasons why Sharecropping enjoys enduring popularity in the real world ,despite being ineffecient in the Marshallian sense.?

Answer 1

Marshall initially considers markets where there are a significant number of sellers and many buyers, where there is no collusion of even a small number of stakeholders on either side, and the knowledge of each actor is sufficient not to sell too cheap or pay more than necessary.

Market demand is the amount of a product that buyers will buy in a specific market over a certain period of time (day, year, decade) at a specific price.

In turn, the market supply is the number of goods that sellers will agree to sell on the market at a particular price within a certain time.

From the point of view of publishing, the market supply is much larger, as a large number of political parties use publishing services to promote their ideas. In addition, the market demand for publishing products does not quite correspond to what Marshall envisioned, this is due to disproportionate demand based in some cases on tradition, in some cases on non-price factors affecting demand.