Structural steel goods are commodities either consumed directly by human beings or used to produce other products and services. They are available in the market where exchange between buyers and sellers takes place. The commodities are sold at a price which is set depending on many factors. Sellers aim at maximizing profits and reducing their cost of production while the buyers aim at maximizing utility and reduce the purchase price.
The market is never left to operate on its own as it may fail. Another party therefore needs to come in. This party is the government and with its mandate has to ensure there is no market failure and that the consumers are protected from unfair sellers. Its regulations extend to those of ensuring good contractual relationships between different businesses as well.
When prices increase they will also make the supplier who is always opportunistic to produce more and sell more to make higher profits with the price. However with a reduced price a problem of hoarding may be experienced as the supplier may hold their stock for fear of making losses. They will therefore supply a lower amount of products and shortages may be experienced.
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.
Complementary products are also a factor to affect demand and supply. They refer to those products that are used jointly, in that one cannot be consumed without the other. Is one is available and the other one is not then all of them is as good as unavailable.
For the demand side, when the prices go up it means that their purchasing power is reduced and they will buy less. When prices reduce, it makes products cheaper and affordable hence more will be demanded. In this case people will take more than they even need and consume it.
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.
The government should not be left out since free markets actually do not exist. It also has a role to play and therefore it ensures that the market runs smoothly with regulations put in place. It also creates a conducive and an enabling environment for supply and demand to interact. However some of its actions like taxes and subsidies greatly affect quantity of structural steel for sale in the market. Taxes will be an expense to the supply side therefore reducing their total production and less will be available to be sold.
The market is never left to operate on its own as it may fail. Another party therefore needs to come in. This party is the government and with its mandate has to ensure there is no market failure and that the consumers are protected from unfair sellers. Its regulations extend to those of ensuring good contractual relationships between different businesses as well.
When prices increase they will also make the supplier who is always opportunistic to produce more and sell more to make higher profits with the price. However with a reduced price a problem of hoarding may be experienced as the supplier may hold their stock for fear of making losses. They will therefore supply a lower amount of products and shortages may be experienced.
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.
Complementary products are also a factor to affect demand and supply. They refer to those products that are used jointly, in that one cannot be consumed without the other. Is one is available and the other one is not then all of them is as good as unavailable.
For the demand side, when the prices go up it means that their purchasing power is reduced and they will buy less. When prices reduce, it makes products cheaper and affordable hence more will be demanded. In this case people will take more than they even need and consume it.
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.
The government should not be left out since free markets actually do not exist. It also has a role to play and therefore it ensures that the market runs smoothly with regulations put in place. It also creates a conducive and an enabling environment for supply and demand to interact. However some of its actions like taxes and subsidies greatly affect quantity of structural steel for sale in the market. Taxes will be an expense to the supply side therefore reducing their total production and less will be available to be sold.
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