Aspects influencing the demand and supply of items
Demand and supply of the items and services are the two determinants of price. It often depends on the quantity of things consumers wish to purchase or the quality of products they can afford, as well as the number of products enterprises are willing to sell on the market. The demand for the products and services is affected by a number of factors. The product's price is the most significant factor. Demand is influenced more or less directly by the price of the product. When the price increases, the demand immediately drops because customers can only afford a smaller quantity at higher prices. Similarly, the income of consumers influences demand. The consumers' purchasing power will increase in proportion to their income. Typically, the demand for one product depends on the price of another. When customers purchase goods and services, they will compare the price of one product to that of a competitor's offering and then choose the less expensive option. Therefore, the demand for a product will increase when it is reasonably priced and priced lower than its competitors. The demand for the products will fluctuate in accordance with alterations in consumer taste, preference, and fashion. People's desire will fluctuate over time in accordance with fashion, and they favor things that are on trend. Consequently, demand will increase for the goods of their choosing. Advertising of the goods is an additional factor influencing demand. Customers will become aware of the product through advertising, and they will be able to learn about new and improved products on the market and their features. The information conveyed to the public through advertising will increase demand for the advertised goods. Consequently, there is always an inverse relationship between product price and demand. A chart depicts the relationship between the price and the amount demanded.
Figure 1 demonstrates the link between price and quantity.
The graph clearly demonstrates that when the price increases, demand will decrease.
Numerous variables influence the availability of goods and services. The first factor is the commodity's price. When a company provides more things at a higher price, there is a positive association between the two factors. This is due to the fact that selling more things at a greater price will boost income. Cost of production is another element that influences the commodity's supply. If the firm's production costs are decreasing, it will raise its supply since it can offer more products at the lower price. Other factors influencing the supply include the prices of other items. If the competitor's prices are high, there will be a greater demand for our items, which would boost our supply. If the firm uses modern technologies for the manufacture of the goods, then technical advancement can also contribute to the supply of the goods, and the supply can be raised accordingly. A chart can be used to demonstrate the positive relationship between price and amount given.
Figure 2 demonstrates the positive relationship between price and quantity.
This graphic demonstrates that there is a positive correlation between product demand and pricing. How the Market Mechanism Works in a Market Economy, p. The demand for certain items and the factors that influence that desire can be analyzed in depth.
Convenience Food
Convenience foods are described as those that transfer the time and effort of preparation from the consumer to the retailer. Examples of convenience foods include fast foods, frozen items, microwavable meals, and food delivered to the home. The key reason for the increase in demand for convenience foods is that they need minimal cooking time. The manufacturers of these items are attempting to shed their bad reputation by providing customers with a variety of healthy options, such as low-fat and low-sodium varieties. Consequently, this has boosted the demand for the same. People are becoming increasingly interested in the consumption of convenience foods, which is the most recent trend in the food consumption sector. Multiple variables affect the desire for convenience foods. Initially, the demand for such things is determined by the growing societal value of time. Due to this, clients are more concerned with time and want all products to be available within a short amount of time. In regards to food, people desire things that are simple to prepare and serve. This development occurred as a result of socioeconomic issues as well as changes in the culture and way of life of the people. Some demographic trends, such as the increasing number of single and married women in the labor market, have contributed to the rise in convenience food products. Large food supply networks' intense advertising and promotional efforts are an additional factor. This has resulted in an increase in the popularity of fast food among customers. The majority of families are supported by two earnings, and the number of single-adult households is also on the rise. The decline in household size and the rise in real income have both contributed to the shift in demand for convenience foods. Additionally, the demand for convenience foods will expand in the next years. According to a poll, dry pasta is the most popular convenience food. The demand for convenience foods would expand in the near future as a result of numerous aggressive and innovative policies adopted by various companies. (Nayga and Farooq).
Internet-purchased merchandise
The Internet is the most recent and best innovation in the realm of communication. Due to the invention of the Internet, the entire universe has shrunk to the size of a small village. In addition, it provides a vast amount of information about markets, government regulations and services, trade fairs, etc. In addition to being a source of entertainment, it offers services such as online banking, reservations, and online ticket purchasing, etc. The emergence of electronic commerce is the Internet's most significant benefit to its users. Through the internet, people are able to purchase items and exchange information around the globe. It encompasses a vast array of products that are available worldwide, and the service is made available to customers at their front doors. It includes everything from household necessities to technology to entertainment. The likelihood of a growth in Internet users is primarily influenced by two things. One is the availability of information offered by businesses, while the other is the requirement or demand for goods and services from users. Numerous variables influence the demand for internet-purchased products. First, it depends on the amount of people who use the Internet to purchase goods and services. The demand for items acquired through e-commerce is also affected by the characteristics of potential purchasers and the distinctiveness of the businesses that use the Internet. The most essential influence is people's attitudes regarding e-commerce, as demonstrated by their online purchasing habits. Currently, the number of people who access the internet is growing. Due to the fact that the majority of Internet users are young, well-educated, and professional, e-commerce will certainly experience significant development in the future years. Since the transition from the traditional Electronic Data Interchange system to the World Wide Web, both the number of internet service providers and the quality of their services have improved. As a result, internet-based commerce is increasing. Internet commerce is dominated by the sale and purchase of things such as CDs, films, cameras, books, and computer programs. The nature of the products traded via the Internet and the nature of the methods used to conduct the trade are the primary factors that facilitate the commerce. Internet users who access services through e-commerce are also influenced by the convenience, privacy, cost, and speed with which they may make purchases on the Internet. It is convenient because it expands individual alternatives and provides additional options for locating the lowest pricing. Diverse laws established on selling provide internet users with a safer and more pleasant atmosphere, hence increasing the need for online purchasing. (Managing Information Technology in New Millennium Organizations, p.246)
Film and photography
There has been a significant movement in camera technology from conventional models to digital cameras. There is a growing need for digital cameras today. So many mobile phone manufacturers have put cameras into mobile phones. Numerous Internet users have entered this sector by providing digital camera services. Digital camera sales have reached new heights. Due to the proliferation of digital cameras and printers, film processing has slowed down, resulting in declining sales. The film processing industry contributes little to the market and is nearly static. The demand for digital cameras depends on a multitude of variables. The most significant element is the younger generation's tendency to share images and videos over the internet and other channels. The newest trend on the market is personalized photos, and digital camera manufacturers are providing so many advanced features for consumers in order to entice people. However, it is anticipated that the use of digital cameras will soon cease. Due to the increasing number of online printing possibilities, industry competition has increased. It also provides printing services and additional items. Through this, images may also be uploaded online, and they also provide a variety of tailored items to entice customers. Consequently, the demand for cameras will be affected by variables such as competition from mobile users who incorporate digital cameras and printing capabilities. Online businesses limit the use of digital cameras since they offer so many options to their customers. However, this will never eliminate the need for professional cameras. Another element that contributes to the need for digital cameras is customers' preferences and preferences. The market for digital cameras is influenced by technological progress. The market for digital cameras has reached a stage of maturity; hence, the demand for them will fall in the future and eventually reach a degree of saturation. (Trends in camera technology compel retailers to retool their operations)
Videocassette (VHS) rentals from retail stores
In the early years, people's access to videos and films was solely dependent on retail establishments. Now, however, the circumstance has altered due to the increased competition from cable television and high-speed Internet access. The emergence of digital technologies is an additional factor influencing the demand for rented videos. All of these innovative technologies offer a variety of individualized options, including direct release and home viewing entertainment via direct broadcast satellite. Due to a decline in the number of videos rented through retail outlets, demand for rented videos is gradually declining. People can now obtain videos through online multimedia sources, and the existing video retail stores are compelled to lend the videos at much reduced rates. This condition will persist in the coming years, and as a result, the future trends of video rentals through retail outlets are slowing. Internet users have access to an infinite range of services. In order to access the internet, certain technological
Both knowledge and perseverance are required. The availability of free and plagiarized copies of the newest videos and films on the internet is a further issue hurting demand. Now, numerous businesses are releasing original videos at minimal cost. This has also impacted the market for video rentals. All of these factors have contributed to the drop in demand for rented videos, a trend that will continue into the foreseeable future. A second issue is an internal one, such as the contractual relationship between video retailers and their suppliers. Thus, changes in the video industry supply chain and intense competition in the home entertainment sector have contributed to a significant reorganization of the business. (Seim).
Programming for pay-per-view television services
Per page view is a method that allows television viewers to purchase and pay for activities that can be viewed on television. The same event is displayed to everyone who orders it. It is the exact opposite of video on demand services, which allow users to watch the event they requested at any time. In a per page view system, events are purchased via a programmed television system or a customer service representative. There is every possibility that pay-per-view broadcasting services will decline in the foreseeable future. Multiple variables influence its demand. First and foremost is the alteration of people's attitudes about it. The number of registered users who access the service has decreased as a result. A second aspect is rivalry from other service providers who offer low-cost digital and multichannel services of superior quality. The rivals provide triple play services that encompass telephone, broadband, and broadcasting. Due to the intense competition, per pay view satellite providers have been unable to compete and are now in the process of withdrawing. Consequently, the demand is gradually declining. (Factors That Will Influence the Demand and Supply of a Given Quantity of Goods)
Factors influencing the supply:
Crude Oil
By a wide margin, crude oil is the most important commodity utilized for energy generation in the world today. This will continue until effective alternative energy sources are implemented. But this does not appear to be the case because unconventional and renewable sources of energy have limitations in terms of cost, practicality and availability. Consequently, crude oil demand will continue to rise in the years to come.
The most important factor about crude oil about