The market Mechanism and its Elements

The Relationship and interaction of the most important elements of the market, which are the supply, demand and price form a market mechanism. The market mechanism and its elements are designed to meet the needs of society. To meet these needs requires resources that are limited. In this regard, it is necessary to choose the best option for their use.

The Market mechanism and its elements are designed to meet the needs expressed through demand. Some social needs can't be expressed through a demand, the so-called public goods. These include the provision of public security of the unified energy system, national defense, etc.

           the Market mechanism and its elements are closely connected with the price, which is the main instrument that influences on supply and demand. A large part of the population's needs are satisfied through demand, which depends on many factors. This can be advertising, fashion, changing tastes of customers.  keep in mind that the buyer is acquiring the goods wants to save money, as wages of the population is not high. This means that the number of purchased goods depends on the price. High price usually reduces demand, and low increases. The fluctuation of prices in the opt does not have a significant impact on the demand of the population. Demand is affected mainly retail prices.

Supply and Demand not only depend on the price, they influence each other directly, regardless of price. Offer on the market there is demand, and demand growth in turn – the supply of goods.

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The Demand — the demand for any product or service and desire to purchase it for a price.

The Proposal – providing for acquisition of certain goods that are in demand.

Price – this is the actual ratio of supply and demand.

From the market depends on the economic situation of consumers and producers. They must in exercising their activities to follow

The parameters of the market demand, supply and price.

Under the market conditions  understand the set of economic conditions currently affecting the economic activities, sales of goods and provision of services. Economic conditions include: the level of prices, the ratio of supply and demand, creditworthiness of customers, market capacity, status, inventory, etc. the Market mechanism and its elements must to know to carry out their economic activities. You need to understand the laws that are the basis of its use. It is the laws of supply and demand, falling demand, costs and benets, competition, changes in offers, profit, etc. Laws are implemented through different types of prices: the equilibrium, equivalent exchange, discriminatory, exclusive, zone, etc.

           the Market mechanism of management in Russia.

In that case, if the market remains uncontrolled, is not regulated by the state, then there is a stratification of the population in financial position, there are no social guarantees can be a monopolization of the market, as well as several other negative aspects, because the market economy is aimed primarily at making a profit.

The State takes on responsibility for combating the negative phenomena that can occur, and uses all possible effective mechanisms and tools. Should be reached a balance between the market mechanism and state management, at which the state must provide care of the market mechanism.

The Market mechanism of income generation.

The incomes of the population - indicators of social and economic welfare of the society. As a result of their functional distribution is the formation of wages, profit, rent and interest. Functional distribution is the ratio of income from labor and from property.