StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The Market Forces of supply and demand - Essay Example

Cite this document
Summary
It specifies on the studying of the aggregated indicators such as prices indices of product so as to understand the main functions of the economy. It is getting people mind to like and trust one in the…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.5% of users find it useful
The Market Forces of supply and demand
Read Text Preview

Extract of sample "The Market Forces of supply and demand"

Download file to see previous pages

These two inter-relates in a situation whereby the producer sells the same quantity of a goods and services that the consumer is willing and capable to purchase. Since a market is a combination of the producer (sellers) and consumer (buyers) of a specific goods and service, the force of demand and supply has been used in the economics to refer to the general behavior of the market participants (Caballero, Hoshi and Kashyap 1947). The main characteristics of a market are that all goods and services are the same and have got a large number of buyers and sellers to curb the effects brought by a single person over the market price.

In the economy, a market exists as a competitive field in which a variety of companies and business entities produce identical goods and service and strive to sell to their prospects. The type of market in operation maintains its’ existence in the economy because of their structure namely; a monopoly; which is a market structure where the market is controlled by one firm. Monopolistic competition is market where a variety of companies have a certain percentage of market share but they all differentiate their goods and service from each other to make them unique.

Perfect competition is a market structure that does not have a limited number of firms that have an entry. It is generally free entry for all interested buyers and sellers. Another market structure is the oligopoly that has its’ operations dominated by few firms and have total control over the majority in the market share. In cases where there two firms are dominating and has full control of the market share, it is referred to a duopoly. Unlike in a monopolistic market structure where we only have one provider, in a monophony market, there is only one person to purchase the products in the market (buyer).

In addition, there is a market structure

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Market Forces of supply and demand Essay Example | Topics and Well Written Essays - 1250 words - 1”, n.d.)
The Market Forces of supply and demand Essay Example | Topics and Well Written Essays - 1250 words - 1. Retrieved from https://studentshare.org/macro-microeconomics/1616321-the-market-forces-of-supply-and-demand
(The Market Forces of Supply and Demand Essay Example | Topics and Well Written Essays - 1250 Words - 1)
The Market Forces of Supply and Demand Essay Example | Topics and Well Written Essays - 1250 Words - 1. https://studentshare.org/macro-microeconomics/1616321-the-market-forces-of-supply-and-demand.
“The Market Forces of Supply and Demand Essay Example | Topics and Well Written Essays - 1250 Words - 1”, n.d. https://studentshare.org/macro-microeconomics/1616321-the-market-forces-of-supply-and-demand.
  • Cited: 2 times

CHECK THESE SAMPLES OF The Market Forces of supply and demand

The world price of copper

According to Mankiw (2012), the law of demand states that as the price of the good falls, the quantity demanded rises; whereas, the law of supply states that as the price of the good rises, the quantity also supplied rises (p.... In Ancient Greece, copper has been used for architectural work and currency development while the demand for better material due to technical developments and emergence of stamping press have raised the need for copper during Industrial Revolution....
5 Pages (1250 words) Essay

Impact of Competition Policy and Regulatory Mechanisms on Tesco

Market structures determine highly the types of prices for the goods in the market.... Fiscal policies are used to influence levels of aggregate demand in the economy.... If the government, for instance, increases its spending and decrease the taxes, then there will be an increase in aggregate demand for the grocery products in the economy (Leach).... The increased aggregate demand may cause a need to increase supply hence invoking the need to increase employment....
10 Pages (2500 words) Case Study

U.S. housing price

The size and location of the housing has an effect on the prices that would exist in the market.... The housing crisis led to the distortion in the demand for the housing in the United States.... However, the homes which have been valued at a very high rate have faced a decline in their values with the problems in the housing market.... This has also posed a threat to the housing market....
8 Pages (2000 words) Term Paper

The Impact of Fiscal and Monetary Policy on an Organisation

Despite this, the policies are helpful to the economy because they help increase aggregate demand where it is lacking and also reduce it (Fishman 11).... The author of this essay under the title "The Impact of Fiscal and Monetary Policy on an Organisation" casts light upon the fiscal and monetary policies which are said to be drafted by governments to encourage or discourage money-spending by citizens....
7 Pages (1750 words) Essay

Business Decision Making: Impact of Fiscal and Monetary Policy

The author examines the impact of fiscal and monetary policy, impact of Apple company competition policy, relationship of market forces of demand, pest analysis of Wal- Market Supermarket, explains how market structures determine to price and analyzes the impact of global factors on UK Supermarkets....
7 Pages (1750 words) Assignment

Australian Wine Exports to the Market of the USA

The aim of the paper “Australian Wine Exports to the market of the USA” is to look at the foreign exchange rate between two currencies.... In this market, when the supply of one currency decreases, the demand for the other currency simultaneously falls.... When the Australian exports of wine to the US market decrease, this indicates that US citizens are supplying less US dollars to buy less of Australian dollars.... When the Australian exports of wine to the US market decrease, this indicates that US citizens are supplying less US dollars to buy less of Australian dollars in exchange which are required to buy a smaller quantity of exports....
6 Pages (1500 words) Assignment

Capitalism and Socialism: Technology Science and Society

nbsp; The economy is based on the free market where goods are produced, sold in the market without the 'invisible hand' referred to by Adam Smith.... Milton and Friedman argue that capitalism is characterized by 'the power of the market' (Friedman and Milton, 1990, 9).... Though the market ensures that goods are equitably distributed, the market has negative externalities and this where the government intervenes.... It offers to cover the health of the poor citizens, and it is not driven by demand and supply, but by a chain of command....
5 Pages (1250 words) Term Paper

Analyse three types of economic systems illustrating the problems and advantages associated with them

Different countries have The main types of economic systems that have been in use all over the globe are traditional, command and market economic systems.... Another type of economic system is the mixed economy that is a blend of pure command and pure market economies.... This paper will discuss the traditional, command and market economic systems....
5 Pages (1250 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us