Products like structural steel are sold in the market. Money is used as the medium of exchange of those products having overtaken barter trade which saw people exchange physical items. Therefore in the market supply, being the sellers and demand being the buyers interact to trade and exchange the goods at a given price.
Both the two have many factors that affect them and the entire market of commodities. Price is a common factor for demand and supply side. When prices go up people will be willing to buy less to meet their budget and therefore we say the demand will reduce and the opposite is true as lower prices will increase the purchasing power leading to more products being demanded in the market.
Suppliers will also reduce the amount available to be sold in the event they expect high future prices. Most of them will reduce the amount they avail to the market awaiting the time when the prices have hiked so as to make big profits. When they anticipate lower prices in the future, they will sell more now to make use of the current prices for higher profits.
The entire supply side is affected by many other factors. The price of the good is the number one factor and it affects both the supply and demand side. High prices will motivate suppliers in their quest to make high profits and they will have to bring more to be sold so that they can make more money. With low prices however they are discouraged as there may be little or zero profits. This means they hold to their stocks until prices hike.
Complementary products are also a factor to affect demand and supply. They refer to those products that are used jointly, in that one cannot be consumed without the other. Is one is available and the other one is not then all of them is as good as unavailable.
Complementary goods also exist in the market and affect the quantity available to be sold. They refer to those commodities used jointly that it is, used together with others for example stoves and kerosene. If one is available in the market and the other is in plenty then it will not be purchased as its complement is not available.
Incomes to the households also affect the goods for sale. When the households get an increase in their incomes, their purchasing power is boosted and they may even shift their buying of products. They usually shift to demand more or higher level products. This therefore affects the quantity available to be sold.
The government should not be left out since free markets actually do not exist. It also has a role to play and therefore it ensures that the market runs smoothly with regulations put in place. It also creates a conducive and an enabling environment for supply and demand to interact. However some of its actions like taxes and subsidies greatly affect quantity of structural steel for sale in the market. Taxes will be an expense to the supply side therefore reducing their total production and less will be available to be sold.
Both the two have many factors that affect them and the entire market of commodities. Price is a common factor for demand and supply side. When prices go up people will be willing to buy less to meet their budget and therefore we say the demand will reduce and the opposite is true as lower prices will increase the purchasing power leading to more products being demanded in the market.
Suppliers will also reduce the amount available to be sold in the event they expect high future prices. Most of them will reduce the amount they avail to the market awaiting the time when the prices have hiked so as to make big profits. When they anticipate lower prices in the future, they will sell more now to make use of the current prices for higher profits.
The entire supply side is affected by many other factors. The price of the good is the number one factor and it affects both the supply and demand side. High prices will motivate suppliers in their quest to make high profits and they will have to bring more to be sold so that they can make more money. With low prices however they are discouraged as there may be little or zero profits. This means they hold to their stocks until prices hike.
Complementary products are also a factor to affect demand and supply. They refer to those products that are used jointly, in that one cannot be consumed without the other. Is one is available and the other one is not then all of them is as good as unavailable.
Complementary goods also exist in the market and affect the quantity available to be sold. They refer to those commodities used jointly that it is, used together with others for example stoves and kerosene. If one is available in the market and the other is in plenty then it will not be purchased as its complement is not available.
Incomes to the households also affect the goods for sale. When the households get an increase in their incomes, their purchasing power is boosted and they may even shift their buying of products. They usually shift to demand more or higher level products. This therefore affects the quantity available to be sold.
The government should not be left out since free markets actually do not exist. It also has a role to play and therefore it ensures that the market runs smoothly with regulations put in place. It also creates a conducive and an enabling environment for supply and demand to interact. However some of its actions like taxes and subsidies greatly affect quantity of structural steel for sale in the market. Taxes will be an expense to the supply side therefore reducing their total production and less will be available to be sold.
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