The construction of demand and supply curves assumes that the primary variable influencing decisions to produce and purchase goods is

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Business

Kash Sherman

25 June, 18:55

The construction of demand and supply curves assumes that the primary variable influencing decisions to produce and purchase goods is

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Jessica Wood · Answer 1

price

Explanation:

In economics and business, price is the exchange value of a good, service or asset. The concept of price is the basic concept in microeconomics and it is one of the most important variables of resource distribution theory (also called price theory). The price is also one of the basic concepts in marketing and it is one of the four variables that businessmen use when making a marketing plan.

Factors affecting pricing

1) Internal Factors

Marketing objectives and strategies For example: If excessive costs are allocated to marketing, the product price can be expensive.

Cost of raw material and supplier

- The reputation or reputation of the organization.

2) External factors

- Demand status in the market For example: If there is a high demand for the product, the price of the product may be high.

- Competitors' prices

- Economic conditions of the country or market. For example: If there is a crisis in the market for that sector, the product price of the sector can be determined as low.

- Legal provisions regarding pricing imposed by the government. For example: Determination of the price of bread.

Supply and demand is an economic model to determine market prices. In a competitive market, one would expect that the unit price of a particular commodity will change until the amount demanded by consumers (at current prices) is equal to that of the manufacturer (the current price). economic balance of prices and quantities.

Four basic laws of supply and demand:

Increased demand and unchanged supply will lead to higher equilibrium prices and higher quantities.

- If demand decreases and supply does not change, it will lead to lower prices and lower prices.

- If supply increases and demand does not change, this will result in lower book prices and higher rates.

- When supply decreases and demand does not change, it leads to higher imbalances and a reduction in quantity.