Market Mechanism and Elements

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relationship and interaction of the most important elements of the market, which are the supply, demand and price forming mechanism of the market.The market mechanism and its components are designed to meet the needs of society.To meet these requirements necessary resources are limited.In this regard, we have to choose the best option for their use.

market mechanism and its components are designed to meet the needs expressed by the demand.Some community needs can not be expressed in terms of demand, the so-called public goods.These include the maintenance of public security, a single energy system, national defense, and others.

market mechanism and its elements are closely linked to the price, which is the main tool that have an impact on supply and demand.Most of the population's needs met through demand, which depends on many factors.It could be advertising, fashion, changing tastes of buyers.It is necessary to take into account that the buyer purchasing goods wants to save as public wages are not high.This means that the amount of purchased goods depends on the price.The high price, as a rule, reduces demand and increases its low.Price fluctuations in wholesale did not have a significant impact on the demand of the population.On the demand mainly influenced retail prices.

Supply and demand not only depend on the price, they influence each other and directly, regardless of price.The offer on the market creates demand, and growth in demand in turn - offering goods.

demand - the need of the population in any product or service and the desire to buy it for a price.

proposal - providing for the purchase of certain goods that are in demand.

Price - is the actual supply and demand.

depend on market conditions economic position of consumers and producers.They have in their activities guided by

parameters of the market, that is, supply, demand and price.

under market conditions to understand the totality of the economic conditions prevailing at the moment, affecting economic activity in sales of goods and rendering of services.The economic conditions include: the level of prices, supply and demand, the solvency of customers, market size, the state of inventories, etc.The market mechanism and its members need to know to carry out their economic activities.It is necessary to understand the laws which are based on its use.These are the laws: demand and supply, falling demand, cost and utility, competition, changes in supply, profits, etc.The laws are implemented through different types of prices: equilibrium, equivalent exchange, discriminatory, exclusive, zonal and others.

market mechanism management in Russia.

In the event that the market remains uncontrolled, is not regulated by the state, then there is stratification of the population on the financial situation, there are no social guarantees, it may cause monopolization of the market, as well as a number of other negative factors, as the market economy aimed atprimarily for profit.

State assumes responsibility for combating negative phenomena that may occur, and uses for this all possible effective mechanisms and tools.It must be achieved ratio of market mechanism and government, in which the state must provide the care market mechanism.

market mechanism of formation of incomes

Incomes - indicators of social and economic well-being of society.As a result, their functional distribution is the formation of wages, profits, rent and interest.Functional distribution is the ratio of income from labor and from the property.