Products like structural steel are sold in the market. Money is used as the medium of exchange of those products having overtaken barter trade which saw people exchange physical items. Therefore in the market supply, being the sellers and demand being the buyers interact to trade and exchange the goods at a given price.
Sellers are willing to bring products to the market to be sold at any time. However there are many factors that affect their willingness and the quantity they supply to the market. Since their biggest objective is to maximize profits, they avail more when prices are high so that more are paid for their items to earn more profits. It is reverse however when prices are low as they will experience more demand and make little or no profit hence not willing in such cases to bring more stock to the market.
Suppliers will also reduce the amount available to be sold in the event they expect high future prices. Most of them will reduce the amount they avail to the market awaiting the time when the prices have hiked so as to make big profits. When they anticipate lower prices in the future, they will sell more now to make use of the current prices for higher profits.
The available goods for sale will also be affected by the current cost of factors of production. Suppliers depend on factors of production to make their products. This means that in the situations they use high costs to produce fewer products will be available in the market but when factors of production are cheap or affordable they are able to supply more to be sold in the market.
However holding to stock waiting for prices to go up is hoarding and it should be discouraged in the market. It is unethical in the business world as it bring inefficiencies that could cause market failure. One of its negative effects on the goods for sale is that it may lead to shortages in the market leaving buyers with no product.
Technology affects supply of commodities in the market. High technology would make production more efficient and effective leading to a higher output. A high output would mean more is available in the market to be sold. Poor technology on the other hand has adverse effects on the quantity and quality produced leaving the supply side with little to offer hence fewer products to be sold in the market.
Incomes to the households also affect the goods for sale. When the households get an increase in their incomes, their purchasing power is boosted and they may even shift their buying of products. They usually shift to demand more or higher level products. This therefore affects the quantity available to be sold.
Governments provide laws and regulations that affect structural steel production and selling. Suppliers may be subjected to very high taxes that will reduce their profits and hence they will be discouraged leading to low production.
Sellers are willing to bring products to the market to be sold at any time. However there are many factors that affect their willingness and the quantity they supply to the market. Since their biggest objective is to maximize profits, they avail more when prices are high so that more are paid for their items to earn more profits. It is reverse however when prices are low as they will experience more demand and make little or no profit hence not willing in such cases to bring more stock to the market.
Suppliers will also reduce the amount available to be sold in the event they expect high future prices. Most of them will reduce the amount they avail to the market awaiting the time when the prices have hiked so as to make big profits. When they anticipate lower prices in the future, they will sell more now to make use of the current prices for higher profits.
The available goods for sale will also be affected by the current cost of factors of production. Suppliers depend on factors of production to make their products. This means that in the situations they use high costs to produce fewer products will be available in the market but when factors of production are cheap or affordable they are able to supply more to be sold in the market.
However holding to stock waiting for prices to go up is hoarding and it should be discouraged in the market. It is unethical in the business world as it bring inefficiencies that could cause market failure. One of its negative effects on the goods for sale is that it may lead to shortages in the market leaving buyers with no product.
Technology affects supply of commodities in the market. High technology would make production more efficient and effective leading to a higher output. A high output would mean more is available in the market to be sold. Poor technology on the other hand has adverse effects on the quantity and quality produced leaving the supply side with little to offer hence fewer products to be sold in the market.
Incomes to the households also affect the goods for sale. When the households get an increase in their incomes, their purchasing power is boosted and they may even shift their buying of products. They usually shift to demand more or higher level products. This therefore affects the quantity available to be sold.
Governments provide laws and regulations that affect structural steel production and selling. Suppliers may be subjected to very high taxes that will reduce their profits and hence they will be discouraged leading to low production.
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