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Subjects of market

Subjects of market.

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Subjects of market

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  1. Subjectsofmarket

  2. The market is a place where sellers and buyers enter into mutual relations and affect each other. Each of them has conflicting interests, the seller wants to sell a lot of goods for the highest price and the buyer, by contrast, wants to buy a lot of goods at low prices. we call these relationships „market relations“.

  3. Different entitiesare entering the market in these relations : • households, • entrepreneurs • state

  4. Homes • Act on themarketofgoods and services, in particular, asbuyers, whobuyconsumergoods and services, or selltheirproducts (e.g. fruits and vegetablesgardeningenthusiasts). They are sellers, whoselltheirworkfor a wage on themarketofproductionfactors.

  5. Businesses, companies and entrepreneurs • standout on themarket, in particular, assellers, whoselltheirproducts on themarketofproductionfactors, and purchasethem. Theirgoalis to make a profit.

  6. State • it should enter the market only when it is necessary to remove its negative manifestations. The State should support free competitive environment. Of course, to be able to work, buyers of goods and services are necessary(Government contracts)

  7. The basic elements of the market are: • Demand • Suply • Price

  8. Demand • is a specific form of expression of able-to-buy needs in the market and is measured by the size of purchase funds of customers. It represents such a quantity of goods which are consumers willing and able to buy at a certain price.

  9. Supply • represents a summary of the individual decisions of independant producers and what and how they will produce. • represents the quantity of goods which producers want to sell at a certain price

  10. Cost • It's the amount of cash agreed between buyer and seller in the purchase and sale of goods. Buyers and sellers influence each other on the market and the result of their interaction is the price.

  11. General assumptions offunctioning of the market mechanism: • the existence of a competitive environment, i.e. competitiveness, • relative freedom of producers on the market • free pricing based on supply and demand of the market • the creation of the General conditions for the operation of the market mechanism by the State. • A precondition for the functioning of the market mechanism is also the market behaviour of each entity on the market.

  12. Questions and Tasks • 1. Explain whatmarket subjects you know and what is their position on the market. • 2. Whatgoods are most frequently bought by your family and what affects the demand for these goods? • 3. How can the State as an entity of the market influence the growth of the economy.

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