Economics - the science that studies the commodity-money relations in society.Thanks to her, we can buy the products we need, to be, to make a profit and invest in infrastructure development.The basic "whales" on which rests the whole complex mechanism is supply and demand.In an economy with particular attention to analyze their relationship and the size of the existing proportions.
What is the offer?
answer to this question is easy to find, you only look at the specialized literature.They pointed out that the economy offers - a process that involves the supply of entrepreneurs to market their products.Their number depends on the ability and willingness of businessmen to do their work, as well as the availability of consumers who do not mind to buy this or that thing.And the price for the supply of goods strictly defined by the laws of the market economy, the presence of competitors, the level of GDP in a particular country, adopted state regulations, as well as other factors.
from the value of production and involved technologies also depends on the proposal.It is very important to the economy, as mentioned two components is characterized by the ability of the entrepreneur to work.It is also necessary that the businessman not only could, but would like to produce goods.Thus, he must have the desire, namely permission to sell at a specified price and the possibility - that the necessary resources and capital to start production.
Supply and demand
They are closely linked.If the proposal - a set of goods in the economy, referred to as the fund market and released to consumers snapped up, demand - the desire to own customers to purchase the item.The ratio of the two components strongly influences the change in the proportions of production, the movement of labor between sectors of capital and its distribution.When demand exceeds supply, the price increases for goods and services, businesses get good dividends.To meet the needs of the people, they increase production: as a result of the demand is met.
If dominates proposal, businesses are suffering losses, people are not interested in the acquisition of goods, while the competition in this case, most often, the prices are falling rapidly.Despite this, always generates a bid request.Their harmonious relationship - a guarantee of an efficient economy, decent standard of living in the country.The greater the demand, the higher the price.But entrepreneurs are not interested in too high a cost: it is easier to keep it at a normal level, but at the same time to expand production and already due to this big profits.
theory of supply-side economics
She developed those economists who are actively studying the demand and supply in the economy.Representatives of the theory are Arthur Laffer, Martin Feldsteyn, George Gilder.The very same term "supply-side economics" has entered into use American Herbert Stein.According to these scientists, to improve production in the state, you need to pay attention to the total supply, while ignoring demand.After stimulating the growth of the latter does not guarantee good long-term results.
theory of economic proposals carries a basic idea: it is necessary to maximally stimulate the factors that affect the mass production of goods.Her proposal was referred to the representatives of the main motivator of growth and prosperity of the economy.Their conclusions are based on the law of the French market specialist Jean-Baptiste Say.According to his statements, the main thing is the production of goods and purchasing power always arises in the process of production on the market.Opponents of the theory offers - supporters of the Keynesian hypothesis - on the contrary, the demand praise and recommend it to encourage it.
main types of proposals
Supply and demand in the economy is always guided by the desire and the possibility of a simple customer.You can measure them in a narrow and a broad scale.Depending on this, there are two types of offer:
- individually.This product of one particular vendor, company or organization.
- total.It is understood the set of all products of a particular sector of the economy, released by all, without exception, businessmen engaged in core business.
can be argued that these two are always subject to the rule, which is formulated by economists.The so-called law of supply says, with an increase in the cost of goods also increased its offer.It should be remembered about the resources, if their use has reached the maximum peak, the rise in prices will not increase supply, and with it the production.Businessmen need to pay great attention to the purchase of materials and their correct distribution and use of the most economical.
price factors
order for the company or organization could freely and in large volume of produced goods, it is necessary to take into account several factors that are directly proportional to affect production.Firstly, it is very cost thing.The higher it is, the fewer you need to sell.A small percentage of people able to pay for the purchase of a round sum, therefore, the proposal should not be large.At the same time low cost allows you to purchase goods it virtually everyone.Therefore, in this case, the production should be increased.
Second, the cost of resources also takes into account the supply-side economics.This means that: they are more expensive than the more commodity price increases - respectively, the volume of sales necessary to lower.Despite this, the supply will always remain flexible.When incomes are growing rapidly, the standard of living in the country increases, even if the high price of the product itself or the material from which it is made, the production can be increased.And experienced businessmen do it gradually, focusing on the demand of the population.
main non-price factors
These primarily include production technology and all of the same resources.After all, these two factors are decisive in the economy.For example, technology.The degree of its development invariably increases the impact of resources - that is, one material cost can get more products.For example, the effect of the active introduction of the production line becomes a higher release of the necessary production rate per one employee.It turns out that an increase in the level of technology grows and quantity.The proposal also increases.However, this factor has little effect on those things that are made by hand.
With regard to resources, they also form the size of the deficit.The economy of this proposal also provides for.Rare materials can not serve as the basis for a large number of goods.Businessman buys such material at a high price: as a result increases the cost of the product itself.In this case, the proposal should not be high, otherwise investments in tangible goods will be repaid due to low sales.
The amount of taxes and manufacturers
They also strongly affect the proposal in a market economy.It is understood that the size of the tax depends on the profit of the entrepreneur.In addition, to compensate for the loss of extortion, businessman forced to raise the cost of the goods - this factor is most significant for those products which is imposed too much tax.For example, alcohol and tobacco - in order to reduce their consumption and save the health of citizens, or fur coats - to prevent destruction of rare animals.
Economy proposal - it is also a focus on the number of manufacturers.The higher it is, the greater the proposal will grow.In this situation it is necessary to take into account the stocks of resources they rapidly be reduced.Businessmen start to use more expensive materials as cheap quickly bought up by competitors.Or import them from abroad, which will also increase costs.Such products will be profitable to sell at the same price, so the proposal will not increase.
other non-price factors
proposal also varies according to the citizens' expectations about future prices, the possibility of raw materials, taxes.For example, farmers may temporarily stop selling potatoes, expecting that its value will increase significantly soon.The reverse effect: the manufacturers will build momentum, predicting an increase in product prices.This factor is difficult to calculate, so it is rarely taken into account in the economic model.
important and the cost of other goods and the money supply.In economics, this means that entrepreneurs are in constant search of the most profitable areas for investment.An increase in prices for a particular product, it becomes an attractive investment - there is the flow of capital.It turns out that non-price factors are also very important: if the value increases, the outflow of money in the sphere of production, offer a particular product is significantly reduced.All this must take into account that in the country's economy flourished, and the demand and supply complement each other.
