Essence and functions of the market.

Demand, supply, price.

Market types.

Markets for factors of production.

Essence and functions of the market

The market relations that have been established in Russia have a huge impact on all aspects of economic life. The need for a market is due to the same reasons that lead to the formation of commodity production: a developed social division of labor and the economic isolation of market entities, due to the presence different forms property.

This is a set of relations of commodity exchange. This is a mechanism of interaction between buyers and sellers, the relationship of supply and demand. Market entities are households, firms and the state.

Household- an economic unit focused on the consumption of goods and services.

A production unit that aims to maximize profits.

It is a system of various government agencies orienting legal and political power in order to control the market in order to achieve public goals.

The object of market relations goods appear. Under commodity in economics means:

the goods themselves (cars, metal, fabric, products, etc.);

service (education);

capital (loans, securities, foreign currency);

• information.

The formation of market relations is based on private property.

Market Feature is competition, the presence of a real possibility of choice for both the seller and the buyer.

The market as an effective mechanism for coordinating the activities of economic entities has a range of benefits:

1) efficient allocation of resources;

2) flexible adaptability to changes;

3) optimal use of the results of scientific and technical progress;

4) freedom of choice and action;

5) the ability to meet a variety of needs.

The market performs in society essential functions.

Regulates the structure of the economy through intersectoral competition. Through the flow of capital from industry to industry, an optimal economic structure, the most promising industries are expanding.

Stimulates the most efficient production through intra-industry competition, which helps to reduce costs per unit of output, encourages the growth of labor productivity, technical progress, and improved product quality.

Informs market participants on supply and demand issues. Through constantly changing prices, interest rates on credit, the market provides production participants with objective information about the required quantity, assortment and quality of those goods and services that are supplied to the market.

Differentiates commodity producers through competition - the economy is "cleansed" of unstable, unviable economic units and promotes the development of more enterprising and efficient ones.

Demand, supply, price

The main parameters regulating the behavior of market entities are demand, supply, price, between which there is a mutual relationship.

Individuals need goods and services to satisfy needs. When they want to buy them, they make a demand for goods and services. is the quantity of a good that buyers are willing and able to purchase at a given price in a given period of time.

Demand relates the quantity of a good to its price. The quantity demanded is the quantity of the good that consumers are willing to buy. The desire of the buyer to purchase goods is expressed in the fact that he has the necessary amount of money for this. states that the demand for goods varies inversely with price. When the price falls, the consumer wants to buy more of the good (the income effect). Also, when the price of a product decreases, it becomes cheaper relative to other products and it becomes more profitable to purchase it ( substitution effect).

In addition to prices, demand is influenced by the following factors:

1) a change in the monetary incomes of the population - if the population is depleted, demand will decrease, if the incomes of the population have increased, this will also affect the growth in demand;

2) changes in the demographic structure of the population - if the number of children in the country increases, then the demand for children's goods will increase, if the population is aging, then the demand for medicines will increase;

3) an increase in the prices of substitute goods increases the demand for the original products;

4) the economic policy of the state towards the poor - if the state pursues a policy of supporting the poor, then demand will grow;

6) fashion - the demand for fashionable goods is always growing;

7) "expectation effect" of negative consequences - in this case, the demand for goods of paramount importance (sugar, flour, pasta, matches, etc.) grows. Negative consequences can be understood as a variety of factors: from price increases to changes in political regimes and natural disasters.

The opposite of demand is supply. is the quantity of any good or service that producers are willing to sell at a given price in a given period.

It says that the quantity supplied of a good changes in direct proportion to the change in price. It shows that manufacturers want to make and sell their product at a high price, not a low one. Those. as prices rise, producers sell more goods, and as prices fall, they sell less. This dependence is explained by the fact that when prices rise, enterprises introduce new capacities, increasing supply. In the event of an increase in prices for the products of enterprises in the industry, other producers rush into it, increasing the total volume of production.

Supply, just like demand, is influenced by non-price factors:

1) increase in production costs - with an increase in the cost of production of goods, the entrepreneur will reduce its production;

2) the departure of the enterprise from the industry - a decrease in the number of producers leads to a decrease in supply;

3) natural disasters - no one will expand production if natural disasters occur in the country (earthquakes, floods, tsunamis, etc.);

4) instability of the political situation - if there is a threat of a change in the political regime, in such a situation the entrepreneur will try to reduce or curtail production so as not to suffer from political upheavals;

5) entry of new manufacturers into the market - an increase in sellers will lead to an increase in supply.

As a result of the interaction of supply and demand, market price.

Laws of market pricing

Thus, the market regulates production, "signals" to the manufacturer what to produce, what quality and in what quantities.

In real conditions, market pricing is limited by the actions of the state or monopolies. The state can introduce artificially low prices for the products of natural monopolies, or by subsidizing producers, sets artificially high prices.

Market types

The behavior of each firm or enterprise is influenced by the type of market in which it operates. The type of market depends on:

product type;

the number of enterprises;

the presence or absence of restrictions on the activities of enterprises;

the presence of obstacles to the emergence of new sellers and buyers;

availability of pricing information.

Allocate the following types of markets.

The market is characterized by a complex structure, which is classified according to different criteria.

For economic purposes:

• market of goods and services;

  technology market;

  labor market;

  capital market (securities);

  construction market;

  information market;

  stock market.

On a territorial basis:

• local;

  regional;

  National;

By nature of sales:

• retail;

  public procurement agricultural products.

According to the mechanism of functioning:

• free;

  monopolized;

  state-regulated;

  planned-adjustable.

By level of saturation(supply and demand ratio):

• equilibrium (demand is equal to the offer);

  scarce (lack of supply with excess demand);

  excess (lack of demand with excess supply).

To comply with the law:

• legal (official);

  illegal ("shadow", "black").

Factor markets

In contrast to the demand for end-use products, the demand for factors of production is secondary. This is explained by the fact that the need for factors of production arises only if they can be used to produce consumer goods that are in demand. The need of people for a certain product appears in the form of aggregate demand in the market. It is this demand that the producer of a commodity is guided by when he buys the factors of production necessary for its production. Thus, the demand for any factor of production is directly related to the demand for consumer goods made using this factor of production.

One of the main markets for factors of production is the labor market.

This is the aggregate public relations regarding employment, training, retraining of personnel and support for the unemployed.

Allocate two main types of labor markets.

Official organizational form labor market is labor exchange, which mediates between employers and employees on recruitment issues.

The labor market is subject to the laws of supply and demand.

Demand in the labor market presented by employers. It is inversely related to wages.

Supply on the labor market formed by workers. It also directly depends on the salary. The higher it is, the greater the offer.

The price of labor as a commodity in the labor market is wage .

Allocate the following payroll features.

Distinguish the following types wages.

The minimum wage limit is the cost of those means of subsistence that are necessary for the life support of the worker. The minimum wage in the Russian Federation since January 11, 2011 is 4611 rubles.

The living wage serves as the lower limit of the minimum wage. It should be noted that in Russia the minimum wage lags behind the subsistence minimum. As of September 1, 2010, it amounted to 5625 rubles.

Salary varies by country, region, various types activities and individuals. Causes of wage differentials individual workers are:

level of qualification, knowledge and experience of the employee;

supply and demand in the labor market;

competition or monopoly in the labor market.

Exist two forms of wages:

Allocate two wage systems:

The two main characteristics of the labor market are the concepts of "employment" and "unemployment".

This is the participation of the population in labor activity that earns them wages. is the ratio of the working-age population to the number of jobs, expressed as a percentage.

This is a socio-economic phenomenon in which part of work force not doing useful work. - the ratio of the number of unemployed to the able-bodied population in percent.

Types of unemployment:

Another market for factors of production is the market for capital and investment.

Capital

Lecture Teacher: Tsventukh Yu.I. TOPIC: "Market of one product". The concept of "market" is multifaceted, and with the development of society and material production, it has repeatedly changed. Initially, the market was considered as a bazaar, that is, a place for market trade, a market square. This is explained by the fact that the market appeared during the period of the decomposition of primitive communal society, when the exchange between communities becomes more or less regular and takes place in a certain place and at a certain time.

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"Lecture. Economy. Theme "Market of one product"»

Lecture

Teacher: Tsventukh Yu.I.

TOPIC: "Market of one product".

The concept of "market" is multifaceted, and with the development of society and material production, it has repeatedly changed.

Initially, the market was considered as a bazaar, that is, a place for market trade, a market square. This is explained by the fact that the market appeared during the period of the decomposition of primitive communal society, when the exchange between communities becomes more or less regular and takes place in a certain place and at a certain time.

The modern definition of the market. The market is a set of all relations, as well as forms and organizations of cooperation between people with each other, related to the sale and purchase of goods and services.

Market Conditions:

Ø social division of labor;

Ø economic isolation of producers;

Ø Independence of production.

Market features:

Ø unregulated offers;

Ø unregulated demand;

Ø unregulated price.

Market functions:

Ø intermediary - connection of producers of goods and their consumers;

Ø pricing - the establishment of an equilibrium price for a particular product - the price at which the demand for a product is equal to the supply of a product;

Ø informational - providing information on the size of a particular production and meeting consumer demand for specific goods;

Ø regulatory - "flow" of capital from less profitable industries with lower prices to more profitable industries with higher prices;

Ø sanitizing (improving) - "liberation" of the economy from inefficient economic activity.

Market types.

Ø According to the current legislation:

legal (lawful)

Illegal (shadow).

Ø According to the object of sale:

goods and services,

factors of production

housing and other structures.

Ø On a spatial basis:

world,

· National,

regional,

local.

Ø By type of competition:

· perfect competition,

monopolistic competition,

oligopoly,

monopolies.

Ø Geographically:

internal,

external.

Ø By the nature of sales:

· wholesale,

Retail.

Ø By saturation level:

balanced,

surplus,

· in short supply.

Ø According to the degree of adjustability:

adjustable,

unregulated.

Lecture: “Demand and supply. Market equilibrium.

Ø using the data received, make an oral report on the topic “The influence of supply and demand on the state of the market”,

Ø write out the highlighted terms

Market equilibrium is such a state of the market when the interests of producers and consumers coincide, when supply and demand are equal. This means there is no surplus of production and no shortage of products, what is produced is what is sold. Such a situation is called market equilibrium, it is characterized by equilibrium price and equilibrium quantity.

The equilibrium price is the market price that satisfies both the buyer and the seller at the same time.

If the price rises above the equilibrium price, then the seller wants to sell more goods, but the consumer will be less willing to buy. As a result, there is an excess of goods. Under the influence of the competition of sellers, the price begins to decrease and buyers will have a desire to buy more, and sellers will begin to sell less. As a result, the market will return to a state of rest.

If the price falls below the equilibrium price, then demand will more offer, there will be a shortage of goods. Under the influence of buyers' competition, the price will begin to increase until supply equals demand, i.e., until equilibrium is reached

Market- the totality of all relations, as well as forms and organizations of cooperation between people with each other, related to the sale of goods and services.

Market Conditions:
- social division of labor;
- economic isolation of producers;
- Independence of the manufacturer.

The market and its features

Market Functions

Market system:

Conditions necessary for the development of a market economy:

Competition- competition, competition between manufacturers (sellers) of goods for the best results, in the general case - between any economic entities, the struggle for markets, goods in order to obtain higher incomes.

production costs- this is the cost of the producer (owner of the firm) for the acquisition and use of factors of production.
economic costs - expenses paid by the firm necessary resources(labor, material, energy, etc.). Economic costs are divided into:
- internal (or implicit) - cost own resource; they are equal to the monetary payments that could be received for a self-used resource if its owner invested it in someone else's business:
- external (explicit, accounting) - the amount of cash payments that the company makes to pay for the necessary resources.
fixed costs- part total costs, which does not depend on the volume of products produced (the rent of the company for the premises, the cost of maintaining the building, the cost of training and retraining personnel, wages management personnel, expenses for utilities, depreciation).
variable costs- part of the total costs, the value of which for a given period of time is directly dependent on the volume of production and sales of products (purchase of raw materials, wages, energy, fuel, transport services, costs for tare and packaging, etc.).
economic profit is the difference between the firm's total revenue and economic costs.
Accounting profit is the difference between total revenue and accounting costs.
Money- this is a special commodity that performs the role of a universal equivalent in the exchange of goods.

Market- the mechanism of exchange between the seller and the buyer, the mechanism of purchase and sale. Market relations- economic relations on the exchange of goods for money. Under market relations, there is independence of producers of goods, free setting of prices for goods, competition, free demand. Market functions: informing, regulating, stimulating, healing, intermediary, pricing.

The boundaries of state intervention in the economy:

Direct intervention: introducing new taxes and increasing existing ones;

Indirect intervention: increase customs duties, rising prices for goods.

Market mechanism- the mechanism of the functioning of the market, which stimulates production, informs about goods and services, determines the division of labor between producers.

Market types:

According to legislation: legal (on legal grounds), black (unofficial, illegal), gray (semi-legal);

By economic purpose: consumer (goods and services), capital market (credits), labor market (labor force), housing market, information market, foreign exchange and securities market, investment (investment) market;

On a spatial basis: international, regional, national, local (local).

Entrepreneurship- activity, the purpose of which is to make a profit (income) (trade, banking, management, etc.). An entrepreneur is the owner of a business or a person who economic activity for the purpose of generating income. Entrepreneurial activity(business) is associated with entrepreneurial risks: the possibility of losses or shortfall in profits. In entrepreneurship, there are subjects(individuals and associations: cooperatives, joint-stock companies) and business objects(any kind of economic activity: trade, commercial mediation, operations with securities).

Firm An organization that owns one or more businesses and uses resources to produce goods or services for profit.

Organizational and legal forms of commercial firms:

Business partnerships - commercial organizations with the capital divided into shares (contributions) of the founders (participants). Contribution to property economic partnership can be money, securities, etc.;

Joint stock companies (JSC) are enterprises in which all property and capital are divided into a certain number of shares. Shares are securities that show how much money its owner has contributed to the capital of the enterprise. The share gives the right to receive a percentage of profits (the right to dividends);

Production cooperatives are organizations in which the participants and owners themselves work in production or are engaged in other economic activities.