Pricing
Pricing is the creation of a price. In a market economy the price is made by supply and demand. The suppliers would like to get the price as high as possible and the consumers would like to pay as few as possible. Prices will be built if consumers and salesmen make an agreement of the exchange of goods.
Type of market
[change | change source]Oligopoly
[change | change source]There are many consumers but only a few suppliers.
Monopoly
[change | change source]There are many consumers but only one supplier.
Polypoly
[change | change source]Many suppliers are compared to many consumers. By the low market share of the individual supplier you call it "atomize market structure". You also call this market form competitive market.
Very important factors for
[change | change source]Suppliers
[change | change source]- Cost of production
- Amount of the market price
- Speculation
- Production facilities
- Market position of the suppliers
- engineering progress
- national sanctions
- quantity demanded
Consumers
[change | change source]- Cost of production
- Necessity
- Available income
- Quality of the product
- Price of substitute (compensating) goods
- Price of complementary (additional) goods
- Quantity of supply
Law of supply
[change | change source]The supplier will offer more goods, if the market price is rising. (and backwards)
Law of demand
[change | change source]The consumer will demand more goods, if the market price drops. (and backwards)