Ralation Supply, Demand, Market, and Goods
A demand show the retionship between the quantity demanded and the
price of a commodity other things held constant. Such as demand schedule
depicted graphically by a demand curve,
hold, constant other things like family incomes, tastes, and the prices of
other goods. Almost all commodities obey the law of downward-sloping-demand,
which holds that quantity demanded falls as a good’s prices rises. This law is
represented by downward-sloping demand curve.[1] A
demand schedule decipted graphically as the demand curve,represent the amount
of some goods that buyers are willing and able to purchase t various prices,
assuming all determinants of demand othet than the price of the goods in question. Such as income :
the tastes and preference, the price of substitute goods and price of
complementary goods.[2]
The Supply gives
the relathionship between the quantity of a good that producers desire to sell
other things constant and that good’s price. Quantity supply curve is upward sloping.[3]
Economists distinguish between the supply curve of an individual firm and
between the market supply curve. The market supply curve is obtained by summing
the quantities supplied by all suppliers at each potential price. This, in the
graph of the supply curve, individual firm’s supply curves are added
horizontally to obtain the market supply curve. The determinants of supply are
: production cost, firm’s expectations about future prices and number supplier.[4]
A market can be called the 'available
market' that of all the people in the
area. Within the available market, there is the 'market minimum' or the market
size, which will buy goods without any marketing effort. This is the lowest
sale that a company could get without any action on its part. In today's world,
this level is sinking ever lower. There is also the 'market potential', which
is the maximum market size that will buy goods when subjected to the greatest
marketing action that a company can do. Beyond this market potential, the costs
outweigh the gains. The market potential is therefore the upper limit for a
marketplace and sales.[5]
Goods are the term good does not include item bought for personal
use, item bought at an auction or
foreclouse sale,aircraft or oceangoing vessels. Goods that are scarce(are in
limited supply in relation to demand) are called economic goods, where as those
whose supply is unlimited and that
require neither payment not effort to acquire,( such as air) are called free
goods. The goods are ordinary good, normal good, superrior good and necessary
good. The fungitional of goods is we should be sure that we choose a reliable company to handle
the job with damages.[6]
Many influence lie
behind the demand schdule for the market as a whole average family incomes,
population the prices related goods, tastes, and special influences. When these
influences change, the demand curve will shift. Elementh other than the good’s
price affect its supply. The important
influences is the commodity’s production cost, determined by the state of
technology and by input prices. Other elements in supply include the prices of
related goods, goverment policies and special influences. The goods influences
about the market,if the goods very much so the demand very much. Shift in the
supply and demand curves change the equilibrum price and quantity.[7]
[1] Paul A.
Samuel, Economics eighteen edition,( United States of America : Mc-Graw
Hill, 2005), p.60
[2] http :// www. Supply
and demand - Wikipedia.htm
[3] Paul A.
Samuel, Economics eighteen edition,( United States of America : Mc-Graw
Hill, 2005), p.61
[4] http :// www.
Supply and demand - Wikipedia.htm
[5] http://www.Goods,
High School Economics Topics _ Library of Economics and Liberty.htm
[6] Paul A.
Samuel, Economics eighteen edition,( United States of America : Mc-Graw
Hill, 2005), p.60
[7] Ibid,
62
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