Video: The offer is Let's figure it out
2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:45
A lot is said about the relationship between supply and demand. This is not surprising, since all this is important for the modern economy. Market supply is what makes the economic situation in our country stable. If it does not exist, then consumer needs will not be met.
Supply is what should equal demand, but what is the point?
Let's look into this matter. So, the offer is a set of those goods that are on the market at a given or considered moment of time or can be delivered to it within a reasonable time. It is worth saying for clarity that the sale is always carried out precisely in its form, and the purchase - in the form of demand. Supply is the total amount of goods that its suppliers or manufacturers are willing to sell. All of them at the moment can be called sellers. This concept, by the way, is connected not only with the transfer of goods. As an example, the money supply is the amount of banknotes that banks are willing to provide to consumers.
The offer must be associated with a reasonable price. Statistics conducted by many economists have proven that manufacturers strive for allforces to produce not a huge amount of goods at a low price, but small lots, the cost of which is high. Yes, such tactics are really more profitable for them. If the price is good, then the seller without hesitation takes on the sale of goods on the market. With all this, the price is the main deterrent for the consumer. Yes, the higher it is, the less goods they will purchase.
Offer is something that is influenced by various non-price factors. These include the cost of resources. It is determined by costs. The cost is inversely proportional to him.
Technology is also a non-price factor. It all comes down to the fact that production with the help of modern technology in itself becomes cheaper. Costs are decreasing and supply is increasing. If production rises in price, then they decrease.
Subsidies and taxes are also important. There is no doubt that productive possibilities are reduced when taxes are raised even a little. With all this, the supply curve will be shifted to the left (on a traditional supply and demand schedule). What this all means is that tax cuts lead to more supply.
He is also affected by waiting. This refers to the expectation of rising prices. Manufacturers, thinking or even knowing that prices will rise, are in no hurry to send ready-made goods to the markets, as they want to sell them at higher prices.
Offers are also affected by competition. With its increase, the number of offers also increases.
Practically all entrepreneurs go about their business only for the sake of their own enrichment. The most literate of them know perfectly well when and in what quantities to supply goods to the market. This knowledge benefits them, but not always favorably affects the well-being of ordinary citizens or even the economic condition of the country as a whole. The market of modern Russia is not as perfect as we would like, however, with all this, the proper balance of supply and demand still manages to be achieved at least partially.
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