Wednesday, August 22, 2007

Determinants of Supply

There are many different variables that can affect the supply in the market. Some of these factors are bought about by changes in the business environment so businesses have no choice but to cope up with these changes. You should note though, that the change in one industry can likewise have a great impact in the overall economy. Here are some of the most common variables that affect the supply of goods and services in the market.

1. The price of inputs - to put it simply, the price of raw materials has a great effect on the supply of products in the market. So you should expect that if commodity products rise up in value, other products will follow its lead. Similarly, if the prices of raw material go down then it is possible that the prices of products will also go down. You should note that if the prices of raw material substantially increases, some firms may not be able to afford the increase and they will likewise decrease the production output or stop the business operations altogether.

2. Technology - technology is also a great factor in determining the supply of products in the market. As the production process becomes automated, more products can be produced effectively thus more products will be available in the market.

3. Expectations - future expectations can affect the supply in the market greatly because of possible occurrences that may either affect the price or even the source of raw materials in the future. For example, if sellers are expecting that there will be an increase in the price of milk in the near future then manufacturers of ice cream and other dairy products are expected to produce more of these items right now but they will only sell it at a later date to derive more profits.

4. Number of sellers - the producers of goods and services in the market also determine the supply of products in the market. For example, if two major companies suddenly cease to operate then you can expect that there will be a shortage of the products or services they are supplying in the market today.

5. Government policies - this factor is often overlooked but government policies can also have an effect on the supply of products in the market. If the government suddenly decides to give tax breaks to some industries if they meet a certain production level then you can expect that these industries will try to meet this standard. Meanwhile, if the government imposes high taxes on certain products or service then the supply and even the demand for thee products will go down.

You should note that there are many other factors that influence the supply in the market. These factors include advertisements, trends, and season among others.

Labels: Business

Comments: Post a Comment

<< Home

Is a Home Business Right For You?
Copyright © Stone Evans, The Home Biz Guy
http://www.PlugInProfitSite.com

Every morning as people wake up and make the commute to work, many dream of the day when they will finally work for themselves. Every time the boss lets someone know that they must give up their weekend plans for the good of the company, people contemplate the benefits of being the owner of their own business.

Are you one of these people?

If you are, it is important to ask yourself some very important questions before you make the uncertain leap into self-employment.

Many dream of the benefits of home business ownership, but few take into account the sacrifices that must be made to bring the dream to fruition. Please don`t make this mistake yourself.

You must approach home business ownership with your eyes wide open. Ask yourself the important questions, and more importantly, answer your own questions openly and honestly.

AN IMPORTANT CONSIDERATION

Are you the type of person who relishes every chance to gather around the water cooler for social interaction?

If so, then home business ownership may not be the right decision for you.

Instead, if you feel that you can be quite content sitting alone at your desk; speaking only to clients and really minding your own home business, then you might have what it takes to succeed as a home business entrepreneur.

If you feel at ease with your own company and don`t need a dozen coworkers milling around your desk, then you, too, could savor the freedoms that will allow you and your family, to live the lifestyle you know you want and deserve.

THE KEY TO HOME BUSINESS SUCCESS

Self-motivation is the key to success when you start a home-based business. You need to possess the ability to push yourself ahead. Your drive and determination will be reinforced with every new sale.

The level of success that you will achieve greatly depends on the time and effort you are willing to plow into your new home business. Your organization, planning and marketing skills, will all be put into practice when you embark on your liberating journey from employee, to being your own boss. In fact, you will be the wearer of many hats and gain a wealth of business experience along the way, when you finally make that commitment to work at home.

YOUR SUCCESS RESTS ENTIRELY UPON YOUR OWN SHOULDERS

You will now be the boss. Are you truly able to work independently? Do you have the drive; the tenacity, to persevere with your home based business? Will you be able to invest the necessary time to nurture it, to watch it grow and see it through, from germination to full, glorious bloom? When you`re the boss, you are responsible for the success of your home business, from A to Z, from disappointments to victory.

When you work at home, it will empower you to achieve many things you were unable to do when you were stuck working for that tyrant boss. Remember him? He`s the guy that wouldn`t let you take time off when your baby was sick...the same guy that called you in to work on a public holiday.

A home business means that you can take good care of your family and make money from home, simultaneously. You will have the best of both worlds! Just think--no more dirty laundry piling up--you can do it while you work. No more scurrying around at the last minute searching for a babysitter either. And no more worrying about getting fired; you`ll be the boss!

IN CONCLUSION...

Stay positive and focused on your home based business, even if, when sales aren`t up to par, you get occasional negative remarks or derogatory comments from people with stuffy, dead-end jobs. Ignore their cutting words and bear in mind that success is the best revenge! Keep your admirable, positive attitude at the forefront and show them what you`re made of!

About the Author:

Empowerism - International Success Mentoring and Global Business Opportunity!
"It's time to put your NetMarketing business on FAST FORWARD with ALL of the tools and training you need to become a SUCCESS on the Internet! All this in a nice, tidy package that's affordable to the masses and pays out a five-figure income! Others have tried it. Empowerism has perfected it..." [Click here to learn more!]

Success University 14 Day FREE TRIAL Offer - #1 Most Visited Personal Development Site in the World!
"Who Else Wants To Learn 'Secrets' That Most People Will Never Know About How To Create a Stable Income Online? If your answer is "Yes", I'll give you a FREE 14-Day "Test Drive" of our system to PROVE this is the Quickest & Easiest way for you to begin making money online..." [Click here to learn more!]

Host4Profit - The Website Hosting Company That Pays You Back! (FREE Bahama Trips, Instant Businesses & Cash Back On Referrals...)
"Sooner or later everyone realizes that they must have their own domain name. However, who you get to host that domain makes all the difference in the world. Most hosts simply provide you with space and that's that. You're on your own when it comes to making your new site profitable. Host4Profit has changed all that. We turn a necessity into a profit machine."  [Click here to learn more!]

Subscribe to our Home Business Tips Newsletter for FREE today ($149.99 value!) and get proven home business tips and tricks delivered to your inbox instantly. Enter your first name and email address and click the button below to get free home business tips now:

Enter Your First Name Here:


Enter Your Primary Email Address Here: