Supply and Demand Analysis Help

A market is a place where the buyers meet sellers for purchasing goods and services at a price. The degree of competition varies from industry to industry and accordingly markets for different goods and services are divided into three broad categories, perfectly competitive, monopolistic and oligopolistic. Demand and supply are the two most important determinants of price in any of the market. The analysis of these two factors helps us understanding how price is set in any market for the said product. This complex analysis is made easy by our economics experts who understand the needs of the clients and write assignments as per the guidelines thus offering the best possible Supply and demand assignment help.

Major Components of Economics Assignment

Perfectly competitive market

When there are several firms selling a product that is identical to those sold by the others then it is referred to as a perfectly competitive market. The number of buyers is large too, such that none of the two parties can have any influence on the market price. Both, the buyers and the sellers are required to take the price. The quantity demanded of a product or service is the number of units that the buyers in the market are willing and able to purchase over a given time period. The supply and demand in a perfect competition determine the price. When the demand for a product exceeds supply then prices tend to rise till the time when the demand falls to match the supply equilibrium sets in, and vice versa. Example, Agricultural markets.

Monopoly

In monopoly, there is a single seller of a particular good or service with large numbers of buyers and hence he has the power to set the price at which he intends to sell the product while buyers have no control. In monopolies, the seller aims at maximizing the profit or minimizing the losses. The equilibrium in such a market is set between the price charged and output produced at that level. Example: electricity and water supply. Questions in Supply and demand assignment help you understand number of such concepts.

Monopolistic

In a monopolistically competitive market, the number of sellers is high but the products offered by them are slightly differentiated. This is the reason that the sellers are able to control the price to some extent due to availability of close substitutes by other sellers. In the short run, the monopolistic firms earn either supernormal or normal profits, or incur losses as they are unable to enter or exit the market. In the long run, a monopolistic competition behaves similar to perfect competition in that the entry and exit of firms is allowed making it possible to earn only normal profit. Example: Airline Industry.


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