Non-price factors influence the demand to market conditions

market - a global concept, which does not have a single and clear definition.Many economic theorists have tried to find the perfect designation that would fully reflects the essence of the term, but an optimal conclusion that all would be arranged, so no one came.But there is something that unites all of these scientists.Each of them argued that the market situation is completely formed non-price factors of demand for goods and services.

In the mid-nineteenth century VIDal defined the market just as a place to trade.Since then, many things have changed in the functioning of the economic sphere of activities as an individual and the country as a whole.Recent economic dictionaries go beyond that and give the following notation: the market - it's all the economic relations which are associated with the exchange of goods or services, as well as to the conclusion of trade deals.That is, the researchers describe it as an abstract, but at the same time, real space, within which there are non-price factors

affecting demand, combined with price controls.Also of great importance for the proposal, which is calculated for all goods and services produced, including for capital, labor and land.In this space also includes methods of interaction between buyer and seller, which define the conditions of sale on the market.

Depending on the classification criterion distinguishes these markets:

  1. On Sale goods: raw materials, tools and production resources, real estate, consumer goods and services, innovation, currency and jewelry.
  2. The scale of the territory covered: zonal, global, regional and domestic, external to the individual country.
  3. The nature and volume of sales: retail and wholesale.
  4. Depending on the level of competition: free (highly competitive), closed (monopoly), oligopolistic and monopolistic competition.In such markets, the impact of non-price factors are in demand.
  5. The level of saturation in goods and services: redundant, equilibrium and scarce.
  6. On the criterion of compliance with current legislation: legal and illegal, that is shady.

Today, the market is a form of organization of effective functioning of the social system of economy in mass commercial production, which is able to provide the full cooperation of production and consumption, as well as the equitable distribution of scarce resources for the benefit of owners of production and financial resources.

We already know that the crucial role played by the market demand for non-price factors - solvent needs and offer providers, namely as many goods and services that manufacturers can put on the market at prevailing prices.These concepts function only for specific individuals or firms, as they estimate the ratio of existing products to all markets of the country and the need for their customers?

For this macroeconomic introduced such a thing as non-price factors of aggregate supply and demand.They are determined by changes in the technological level of production in the country, the number of users of a product, the level of world prices for raw materials and state of the domestic markets in all sectors.That is, these figures do not represent the internal state of the economy and identify the general condition of all domestic segments of the economy in total.What these economic categories are different from those that had been considered earlier?It's very simple -netsenovye demand factors determine the amount of services and goods that every consumer can afford to buy in a given market.For example, it may be a Honda car market, but the aggregate demand will characterize the amount of vehicles that consumers want to buy in the country (regardless of brand).