What is Fluctuation in prices and Instability in prices

Fluctuations in prices can be defined as upward and downward movements which are irregular. The term price fluctuation refers to movement or changes in prices of a commodity or group of commodities a given marketplace or market area. Given a commodity and market, the changes in price over time essentially mean price fluctuations.

 

Price instability means lack of stability in prices. Stability is the quality or characteristic of being stable. Instability in prices is defined as the state in which the prices continue to change over time and space. The extent of instability has to be examined in relation to time. It can be looked at within a day or over a month, season, year and decade. Fluctuations in the prices are associated with varying lengths of time due to various factors.