What is the offer?

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2020-06-21 22:00:06

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Every educated person needs to understand what the supply and demand in the market and how these concepts affect the price level. As you know, manufacturers are unable to provide an unlimited number of products and services, as potential buyers are not able to consume the entire volume. In order to organize market system, used indicators such as offer. It represents the total production supplied to the market per unit of time or for a certain period.

what is the offerUnderstanding that this proposal, should take into account that it reflects not only the actual presence of goods on the market, but the quantity that the vendor can deliver on demand of the client. The current economic and political situation in the country allows businesses to make decisions about for whom and in what quantity to produce. The manufacturer, in turn, determines the maximum volume of production based on the analytical data. Professionals make appropriate conclusions on the basis of objective law, reflecting the dependence of the offers and prices. Indeed, between these two indicators there is a connection, because any increase in the value of the goods leads to an increase in retained earnings, which gives grounds for business expansion.

market predozheniye

In order to understand what is supply and demand, it is also necessary to understand the interaction of these concepts. With increasing demand for the product, that is, when buyers are willing to buy more products, manufacturers are beginning to increase supply. If you present these concepts in a graph in the same plane, we get two intersecting straight lines. At the intersection of the equilibrium price, there is achieved a condition in which supplied a number of products which can consume the target audience. Thus, the demand creates supply and Vice versa.

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Among the factors that influence the supply, especially want to highlight non-price. These include the cost of raw materials for production, the degree of the tax burden, inflation expectations. For example, an increase in the cost of raw materials and constant prices of manufactured goods to the head of the company has to reduce the volume of the finished product. Accordingly, on the graph the supply curve moves to the left. The opposite trend is observed at lower cost for raw materials: the production increases and the curve shifts to the right.

Often, public authorities regulate the market supply system of taxation. If the government decides to support the development of a particular industry, then the tax rate for such enterprises is reduced. Then the entrepreneur appears more of its own funds, allowing it to increase the volume of production. As the effective lever you can mark the various grants and subsidies that are specially designed for the development or expansion of the activities of individual organizations.

demand creates supply

Considering the question, what is the proposal, it is necessary to examine this concept in conjunction with other factors.


Article in other languages:

AR: https://tostpost.com/ar/business/22823-what-is-the-offer.html

BE: https://tostpost.com/be/b-znes/40236-shto-takoe-prapanovu.html

DE: https://tostpost.com/de/business/39780-was-ist-das-angebot.html

ES: https://tostpost.com/es/centro-de/39509-cu-l-es-la-oferta.html

HI: https://tostpost.com/hi/business/24449-what-is-the-offer.html

JA: https://tostpost.com/ja/business/22367-what-is-the-offer.html

KK: https://tostpost.com/kk/biznes/40619-b-l-synys.html

PL: https://tostpost.com/pl/biznes/42489-co-to-jest-zdanie.html

PT: https://tostpost.com/pt/neg-cios/42118-que-tal-proposta.html

TR: https://tostpost.com/tr/business/37183-ne-b-yle-bir-teklif.html

UK: https://tostpost.com/uk/b-znes/41122-scho-take-propozic-ya.html

ZH: https://tostpost.com/zh/business/33431-what-is-the-offer.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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