A lot is said about the ratio of supply and demand . This is not surprising, since all this is important for the modern economy. Market supply is what makes the economic situation in our country stable. If there is none, then consumer needs will not be satisfied.
Supply is something that should equal demand, but what is the point?
Let's look into this issue. So, an offer is a combination of those goods that are at a given or a given moment in time on the market or can be delivered to it within a reasonable time. For clarity, it should be said that sale is always carried out in its form, and purchase is in the form of demand. A proposal is how much of the total goods the suppliers or manufacturers are willing to sell. All of them at the moment can be called sellers. This concept, by the way, is associated not only with the transfer of goods. An example is the fact that money supply is the amount of money that banks are ready to provide to consumers.
The offer should be linked to a reasonable price. Statistics conducted by many economists have proved that manufacturers strive by all means to produce not a huge amount of goods at a low price, but small batches, the cost of which is high. Yes, such tactics are indeed more profitable for them. If the price is good, then the seller without hesitation takes up the sale of goods on the market. With all this, the price is the main constraint for the consumer. Yes, the higher it is, the less product will be purchased by him.
An offer is something that is influenced by various non-price factors. These include the cost of resources. It is determined precisely by the costs. The amount of costs is inversely proportional to it.
Technology also refers to non-price factors. It all comes down to the fact that production using modern technology in itself becomes cheaper. Costs are reduced, and offers are increased. If production rises in price, then they decrease.
Grants and taxes are also important. There is no doubt that production opportunities are reduced when taxes become even a little more. In this case, the supply curve will be shifted to the left (on the traditional supply and demand chart). This all means that tax cuts increase supply.
It is influenced by expectation. This refers to the expectation of price increases. Manufacturers, thinking or even knowing that prices will rise, are in no hurry to send finished goods to the markets, because they want to sell them at higher prices.
Offers are also affected by competition. With its increase, the number of offers also increases.
Almost all entrepreneurs are doing their job only for their own enrichment. The most competent of them know very well when and in what quantities to deliver goods to the market. This knowledge is beneficial to them, but not always favorably affects the well-being of ordinary citizens or even the economic condition of the country as a whole. The market of modern Russia is not as perfect as we would like, but with all this, the proper balance of supply and demand can still be achieved at least partially.