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When the demand for a commodity is confined within a country's national boundaries, often due to government trade policy, the product is said to have a:
ALocal market
BRegional market
CNational market
DInternational market
Answer & Solution
Correct answer: C. National market
1. A national market exists when demand for a commodity is limited to the national boundaries of a country.
2. The trade policy of the government may restrict trading within the country.
3. Hindi books having a market in India but not outside is the example given.
4. Therefore the national market is correct.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 4 Unit I "Meaning and Types of Markets", p.2_
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