Social studies graphs supply and demand. Supply and demand

Lecture:

Market, its types and functions

The market is one of the important social institutions in the economic sphere of society. In the ordinary sense, it is a meeting place between seller and buyer, a place of trade. But the exam requires you to apply a scientific understanding of the market, so remember the following definition:

Market- economic relations between producers and consumers that arise as a result of the exchange of goods and services for money and vice versa.

There are many types of markets. By geographic location: local (located in a city or village), regional (in a region, region, republic), national (in a country) and world markets. By the nature of sales: wholesale (trade in batches of goods) and retail (trade by piece) markets. By purpose of objects of purchase and sale: securities market, foreign exchange market, labor market, consumer market, etc. In accordance with current laws: legal and illegal (shadow, black) markets. By type of competition: pure market, monopolistic market, etc.

Like any other social institution, the market performs functions. Let's look at them:

Informing - the market informs the manufacturer about goods and services that are in demand, and the consumer about the quality of the product and its range.

Mediation - the market is a meeting place between producer and consumer and mediates relations between them.

Regulatory - the market influences the quantity, quality, range of production and consumption, and therefore regulates supply and demand.

Pricing - the price is set as a result of the relationship between supply and demand.

Stimulating - the market stimulates manufacturers to introduce new technologies into production and improve the quality of goods and services, since low-quality goods will not be sold in a competitive environment. Thus, the market contributes to the expansion of the range of goods and services.

Coordinating - the problem of limited resources encourages producers to reduce the cost of producing economic goods, but produce them in quantities sufficient to satisfy people's needs and make a profit.

Sanitizing- improving the market through the liquidation of unprofitable enterprises.

To develop a market economy, an infrastructure is needed that organizes the movement of goods and cash flows, and also provides the necessary information to market participants. The market infrastructure consists of market institutions such as exchanges (commodity, stock, labor), transport and information networks, communications, insurance companies, courts, etc. Also, a necessary condition for the existence of market relations is competition, which influences exchange.

Competition and its types

Competition- this is competition between market entities (producers or consumers) for the best conditions for the purchase and sale of goods and services.

The importance of competition is great. Firstly, it encourages manufacturers to create high-quality products in a wide range. Secondly, competition is necessary so that the consumer can make a rational choice from a variety of goods and decide to buy or not to buy. Competition can be perfect (pure), monopolistic and imperfect.

On the market perfect competition similar (identical) goods and services are sold. There are many large, medium and small manufacturers, as well as many buyers. All participants in this market have the same information about the price and quality of the product. The price is formed under the influence of supply and demand, so neither the manufacturer nor the consumer can impose favorable trading conditions. Another characteristic feature of a perfectly competitive market is the absence of barriers for competitors to enter or exit the market. Examples of a perfectly competitive market are the agricultural market, the foreign exchange market, and the stock exchange.

On the market monopolistic competition There are many companies and individual entrepreneurs selling different products that satisfy one need. For example, the children's clothing market. This type is similar to pure competition. The difference is that there are slightly fewer competitors here and each manufacturer offers its own selling prices for the goods. But such pricing freedom is limited by the fact that there is enough competition in the market, and the entry of new competitors is also open.

• Species imperfect competition are oligopoly, monopoly and monopsony. Sign Oligopolies is the presence of several large firms that have divided the market and compete with each other (automobile market). Price wars arise between oligopolists when each firm seeks to set prices lower than those of its competitors. Such a race sometimes leads to the bankruptcy of a company, so some oligopolists enter into secret conspiracies and create alliances with competitors. Sign monopolies is that there is one seller of a unique product on the market. The monopolist has no competitors and sets prices at will. For example, if there is only one car insurance company in your city, then it is a monopoly. An interesting type of imperfect competition is monopsony, when there are several sellers in the market, but only one buyer. Example monopsony is the market for military equipment and weapons me or the space equipment market, the only buyer of which is the state.

One of the functions of the state in a market economy is to protect the market from monopoly and stimulate competition, because monopolists inflate prices, and this is contrary to the interests of the consumer. Therefore, among the directions of the state’s internal policy there is also antimonopoly. Its measures include:

• the publication of antitrust laws, for example, in some states legal liability of company managers for market monopolization is established;
• the establishment of special antimonopoly services, for example, in our country the Federal Antimonopoly Service (FAS RF) was created;
• providing support to small and medium-sized businesses, simplifying the procedure for their registration, providing financial assistance (subsidies);
• price control.

Supply and demand

The basis for the functioning of the market mechanism is demand, supply and price. These elements regulate the behavior of producers and consumers in a competitive market. Let's consider how.

Demand comes from the consumer and is expressed in the demand for a specific product in a certain market segment. Essentially, demand is the reaction of consumers to price or fashion, which is expressed in their willingness to buy a specific product from a specific seller and for a specific price. There are price and non-price factors of demand. Non-price factors include consumer income, fashion and tastes, the number of consumers in the market, seasonality, local traditions, expectations of price reductions or increases. In addition, before buying a product, consumers evaluate the prices of complementary goods (sneakers, laces) and substitute goods (rice, buckwheat, tea and coffee).

Offer comes from the manufacturer and is defined as his ability and willingness to sell a specific product to a specific buyer at a specific price. There are also price and non-price factors here. The latter include prices for raw materials, production technologies, taxes and duties, the number of competitors in the market, expectations of price reductions or increases.

Price is the amount of money that determines the cost of a product or service. Information about price changes allows the manufacturer to increase or decrease production. The price is formed by the demand for the product and cannot be set at the will of a particular manufacturer or state. In reality, two prices are set for the same product: supply and demand. Ask price - this is the maximum amount of money at which the buyer agrees to buy the product. A offer price- this is the minimum amount of money at which the seller agrees to sell the product. The seller and the buyer come to the equilibrium price, which suits both and they conclude a purchase and sale transaction. Alfred Marshall formulated the equilibrium price theory. economist who made a significant contribution to the development of economic science. He said that market equilibrium is established when the volumes of supply and demand are equal.

A. Marshall formulatedlaw of supply and demand , according to which the higher the price, the lower the demand and the higher the supply, and vice versa, the lower the price, the higher the demand and the lower the supply. The magnitude of supply and demand can be determined by measuring the level of sales of a specific product in the entire market segment.

Adam Smith - Scottish. economist, in his work he first used the concept "the invisible hand of the market" , which has become a popular metaphor. What does this phrase mean? And the fact that an individual producer of goods and services, with the goal Receiving a profit from their activities, at the same time creates public goods, without which it is impossible to satisfy human needs. Thus, all producers collectively, striving for their own benefit, are directed by the “invisible hand of the market” towards the interests of the entire society.

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Grade 11 Unified State Exam in Social Studies Solving graphic problems Tasks A8 Author of the resource: Anna Alekseevna Studentsova, teacher of history and social studies MAOU Gymnasium No. 6, Tikhoretsk

Law of Demand The higher the price, the lower the quantity demanded D - demand line The lower the price, the greater the quantity demanded P - price, Q - quantity

But changes in the quantity demanded can also be influenced by non-price factors. The effect of price on changes in quantity demanded will be displayed by a graph depicting a single demand line.

Type of shift in the demand schedule under the influence of non-price factors Non-price factors influencing demand: Consumer income level; Fashion influence; Seasonality; Substitute goods Government actions; Inflation expectations; Force majeure

Task 1. The figure shows the situation on the building materials market: the demand line D has moved to a new position D1 (P is the price of the product, Q is the quantity of demand). The change in demand can be caused primarily by: An increase in the number of manufacturers of building materials The introduction of a new tax on manufacturers Improvements in technology Anticipation of increased prices for building materials

Algorithm of reasoning: - points 1,2,3 characterize the change in the proposal; - movement from Q1 – Q2 shows an increase in the quantity of demand, which corresponds to the situation under No. 4. A change in demand can be caused primarily by: An increase in the number of manufacturers of building materials The introduction of a new tax on producers Improvements in technology Expectations of increased prices for building materials

Task 2. The figure shows the situation on the TV market: the demand line D has moved to a new position D1 (P is the price of the product, Q is the quantity of demand) A change in demand can be caused primarily by: A decrease in net TV manufacturers A change in plasma screen technology A decrease in consumer income Increase competition between producers

Task 2. Reasoning algorithm: - points 1,2,4 characterize a change in the proposal; - movement from Q1 – Q2 shows a decrease in the quantity of demand, which corresponds to the situation under No. 3. A change in demand can be caused primarily by: A decrease in net TV manufacturers A change in plasma screen technology A decrease in consumer income Increasing competition among commodity producers

Law of supply The lower the price, the lower the quantity demanded P - price, Q - quantity The higher the price, the greater the quantity supplied S - demand line

But changes in the quantity supplied can also be influenced by non-price factors. The effect of price on changes in quantity supplied will be displayed by a graph depicting a single supply line.

Type of shift in the supply schedule under the influence of non-price factors Non-price factors influencing changes in supply: Changes in technology; Taxes and subsidies; Availability of resources; Existence of substitute goods; Availability of complementary goods (complements) Weather conditions; Inflation expectations; Market volumes.

Task 3. The figure shows the situation in the housing market: the supply line S has moved to a new position S1 (P is the price of the product, Q is the quantity of demand) This movement can be caused primarily by: Increased requirements for developers Increased incomes of the population Reduced production costs of new housing Subsidizing builders

Problem 3. Reasoning algorithm: - point 2 characterizes the change in demand; - points 3.4 will increase production growth; - movement from Q1 – Q2 shows a decrease in the supply value, which corresponds to the situation under No. 1. This movement can be caused primarily by: Increased demands on developers Rising incomes of the population Reducing the costs of producing new housing Subsidizing builders

Task 4. The figure shows the changes that have occurred with the supply of freshly caught fish: the supply line S has moved to a new position S1 (P is the price of the product, Q is the quantity of demand) This movement can be caused primarily by: Improvement of fish breeding technology; With the holidays of fishery workers approaching; With the popularization of fish dishes in the media and the publication of books about healthy food; With rising prices for other protein-containing products.

Problem 4. Reasoning algorithm: - point 3.4 - characterizes the change in demand; - points 2 leads to a decline in production; - movement from Q1 – Q2 shows an increase in the quantity of supply, which corresponds to situation No. 1. This movement can be caused primarily by: Improvements in fish farming technology; With the holidays of fishery workers approaching; With the popularization of fish dishes in the media and the publication of books about healthy food; With rising prices for other protein-containing products.

Tasks for independent analysis.

Task 5. The figure shows the situation on the tobacco products market: the demand line D has moved to a new position D1 (P is the price of the product, Q is the quantity of demand). The change in demand can be caused primarily by: An increase in the income of tobacco producers; Changing people's preferences; Improving tobacco production technology; Increased competition among producers.

Task 4. The figure shows changes in the household chemicals market: the supply line S has moved to a new position S1 (P is the price of the product, Q is the quantity of demand) This movement can be caused primarily by: Rumors about the dangers of household chemicals for health; The arrival of the holiday season; The emergence of products based on natural ingredients; Reducing production costs of household chemicals.

Literature: 1. A.Yu. Lazebnikova, E.L. Rutkovskaya. Typical test tasks in social studies. M.: Exam, 2013 2. E.V. Savitskaya. Economics lessons at school. M.: Vita-Press.2002 3. P.A. Baranov. Express tutor for preparing for the Unified State Exam "Economics". M.: Astrel. 2012

Thank you for your attention

Demand– the desire and ability of consumers to purchase goods and services. The main indicator of demand is its volume, i.e. the number of goods that buyers purchase over a certain period of time. Human needs and desires are limitless, but the resources for the production of goods and, as a result, the number of goods on the market are limited. The consumer makes a choice based on the quality of the goods offered, his own income and the prices of substitute goods. Substitute goods are cheaper goods that can replace expensive analogues (for example, cheaper domestic butter can become a substitute for imported margarine). However, demand is primarily affected by price product – the cost of a product or service.

Law of Demand states: if the price decreases, then demand increases. That is, there is an inversely proportional relationship between the price of a product or service and the amount of demand.

Thus, the demand is influenced by the following demand factors:

Price of goods and services. The lower the price, the greater the demand for the product. During sales, the price decreases and demand increases. Demand falls if a product goes out of fashion (for example, the fashion for galoshes);

Demographic changes. Different ages have different needs (the population group from 16 to 35 years old consumes the most goods);

Changes in prices for substitute goods;

Changes in prices for related products. If the cost of photographic film is three times more expensive than the price of a camera, then the demand for cameras will fall; if the price of gasoline and auto parts is very high, then the demand for cars will decrease;

Changing consumer expectations and preferences.

Offer– the desire and ability of a manufacturer or intermediary to sell goods and services on the market. An entrepreneur uses resources (capital, land, hired labor, entrepreneurial talent) in production or trade for the purpose of making a profit.

Law of supply states: the higher the price, the greater the supply. As prices rise, the supply of goods and services increases, as entrepreneurs strive to produce those goods that are in demand and are expensive. Producing cheap goods can cause losses. That is, there is a direct relationship between the price of a product and the quantity of the product that can be sold.

Supply is influenced supply factors:

Changes in the price of factors of production (hired labor, natural resources, capital, business services). If the price of any of these inputs increases, the firm will sell less output at that price and earn less profit;

Changes in prices for other related products. If car tires cost more than a car, then it will not be profitable to produce and sell cars. The supply of cars on the market will decrease;

Tax changes. If taxes increase, fewer goods can be produced and offered for sale from the same resources.

Supply and demand are the basic concepts of market relations studied in the social studies course. They are used to build relationships between the price of any product and the cost of services offered by manufacturers. Two simple concepts help to build trade relations economically.

What is "demand"?

For the first time, the 14th century philosopher and Arab historian Ibn Khaldun tried to imagine the relationship between two economic terms and identify the laws of their influence on market promotion. The scientist voiced the idea of ​​​​establishing the cost of an item offered to the market depending on the demand of the population and the number of products (services) offered. The idea explained to merchants how to behave: selling a product where there is a lot of supply is not worth it, you need to look for markets with a shortage of this type. When there is a shortage, the price becomes higher, which means the sale is more profitable.

What is demand? This is the need of a person (consumer) for a certain type of benefit. The quantity of demand is a quantitative indicator of a product or the volume of a service that a buyer (consumer) needs at a certain time.

The law of demand was formulated in the 19th century by A. Marshall. The value is inversely related to the set price: the lower the price, the higher the public demand; the law also applies vice versa. Scientists have built graphs of the relationship between demand and trade supply. The graph looks like a curve: the price increases - the curve moves away from the zero mark to the left, the price decreases - the curve moves to the right.

Factors changing demand

The size of the consumer's trade request depends on a number of factors :

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• Number of buyers : the more there are, the higher it is.
• Revenue growth : The higher the consumer's income, the higher the demand. In this factor, the lowest type of product becomes unclaimed.
• Changes in prices for goods , which are analogues or complementary to the first. An easy example is related to cars: higher fuel costs, less demand for vehicles.
• Fashion directions : things that are considered trendy this season are in high demand.
• Seasonality : Summer clothes are in demand in the summer.
• Quantity and availability of goods - substitutes.

The proverb invented by the people: “Prepare a sleigh in summer and a cart in winter” clearly conveys the meaning of the market law, but human psychology changes its observance.

Offer

According to social science, the concept has meaning in the sense of bringing goods (services) to the counter. The amount of trade supply is a quantitative measure of how much of a product is being brought to market, its price and change over time. The law of supply is based on a direct dependence on price: the lower the cost, the higher the level of supply, and the law also applies vice versa. The supply graph is the opposite of demand, although the shape of the graph is the same - a curve. The base of the curve is directed away from the zero mark. As the cost increases, the curve shifts to the right; when it decreases, it shifts to the left.

The law of supply helps producers raise their income levels and earn more.

Factors changing supply

Trade supply, like economic demand, is influenced by factors. What's included the main reasons for the change in “supply” :

• Increasing the number of enterprises producing similar goods.
• Improving working conditions: improvement and modernization of technological processes.
• Availability of resources, their quantity (items made of expensive and valuable metals are in less demand than jewelry items or in their complete absence).
• Subsidies for goods, tax charges.
• Natural conditions affecting production and natural climatic conditions of the market location: in the south - one offer, in the north - another.

There are factors that come from a temporary indicator. For example, Christmas trees are actively sold only during one period. The rest of the time supply is at its lowest level.

One of the factors influencing the concept of market supply is the size of the market. The smaller it is, the greater the level of demand.

What have we learned?

From an article on social studies (grade 10), we learned that the elasticity of supply and demand allows the two parties to trade relations: producers and consumers, to sell and buy goods at a profit. Both parties, taking into account the laws, find optimal conditions for sale and acquisition. The concepts of the two directions of the market are aimed at helping society, its development and promotion to higher levels of trade relations.

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

Conditions for market emergence:
- social division of labor;
- economic isolation of producers;
- independence of the manufacturer.

Market and its signs

Market functions

Market system:

- from the point of view of current legislation: legal (legal) and illegal (shadow);
- by sales objects:
. consumer goods (commodity exchanges, fairs, auctions, etc.) and services;
. means of production; work force; investments, i.e. long-term investments; foreign currencies; securities (stock exchanges); scientific and technical developments and innovations; information;
- on a spatial basis: world, regional, national, local;
- by type of competition: pure (free) competition, imperfect (monopolistic) competition; pure monopoly; oligopolies.

Conditions necessary for the development of a market economy:

- conditions for the development of competition: free pricing, diversity of forms of ownership, absence of market monopolization, laws protecting private property rights;
- availability of reserves for economic growth (free capital, reserves of labor and natural resources);
- development of market infrastructure (stability of the banking and monetary systems, ensuring the movement of commodity, cash, labor and information flows).
Monopoly- the exclusive right to carry out any type of activity, granted to a certain person, group of persons or state.
Natural monopolies: a situation when meeting market needs is more effective with one company than with several, since there is a saving effect as a result of the consolidation of production (for example, services for providing gas, electricity, water to railways).

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

Market models	Characteristic
Pure (free competition)	There are many small firms offering homogeneous products; there are no restrictions on the access of one or another firm to information about the state of the market, prices for goods (services), resources, costs, etc. There are no restrictions on the entry of new firms into the industry, entry and exit from the industry is free. The seller cannot exercise control over prices; the price is determined by the relationship between supply and demand.
Pure monopoly	An industry consisting of one firm. She is the only seller of this product, which is unique. The monopolist dictates the price. The company exercises control over the price, because controls all proposals.
Monopolistic competition	There are significant barriers to entry for other firms into the industry. A large number of large companies offer homogeneous products. Limited control over market prices. Entry and exit from the market is free. Each company strives to make its product unique, but products are interchangeable. Economic rivalry is based not only on price, but also on non-price competition.
Oligopoly	The existence in the market of a small number of large firms that control its main part, distributing the market geographically or by product range. Entry of new firms into the industry is difficult. Interdependence of firms in deciding prices for their products.

Production costs— these are the costs of the manufacturer (the owner of the company) for the acquisition and use of production factors.
Economic costs- costs with which the company pays for the necessary resources (labor, material, energy, etc.). Economic costs are divided into:
- internal (or implicit) - the cost of one’s own resource; they are equal to the monetary payments that could be received for an independently used resource if its owner had 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 of the total costs that does not depend on the volume of output (the company’s rent for premises, building maintenance costs, costs of training and retraining of personnel, salaries of management personnel, utility costs, 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 of containers and packaging, etc.).
Economic profit is the difference between a firm's total revenue and economic costs.
Accounting profit is the difference between total revenue and accounting costs.
Money- this is a special product that plays the role of a universal equivalent in the exchange of goods.