Definition of the proposal function. Offer, Offer function What functions can define the function of the proposal

Offer function Determines the proposal, depending on the different factors affecting it. The most important of them is the price per unit of good at the moment. Changing the price means movement on the proposal curve. In fact, the benefit of the benefit is affected not only the prices of the good itself, but also other factors: 1) prices of production factors (resources), 2) technology, 3) price and scarce expectations of market economy agents, 4) tax size and subsidies, 5) sellers and others. The value of the proposal is the function of all these factors

Qs \u003d f (p, wg, k, t, n, c),

where WG - resource prices;

K - the nature of the technology used;

T - taxes and subsidies;

N - the number of sellers;

In - Other factors.

Movement along the supply curve reflects changing the value of the offer:the higher the price, the higher (with other things being equal) the value of the proposal and, on the contrary, the lower the price, the lower the value of the sentence. Shift curve left or right reflects change offer:it occurs under the influence of factors defining the proposal function.

To understand the function of the proposal, the time factor is important. Typically distinguished the shortest, short-term (short) and long-term (long) market periods. In the shortest period, all production factors are constant, in short-term - some factors (raw materials, labor, etc.) are variables, in long-term - all factors variables (including production facilities, the number of firms in the industry, etc.).

INconditions of the shortest market period the increase (decrease) of demand leads to an increase (decrease in) prices, but does not affect the value of the proposal. INsLOshort period increased demand causes not only the rise in prices, but also an increase in production volume, since companies manage to change some factors of production in accordance with demand. INconditions are longth Period an increase in demand leads to a significant increase in the supply at constant prices or an increasing increase in prices.

3. Equilibrium demand and suggestions and its models.

In a market economy, competitive forces contribute to the synchronization of supply prices and supply prices, which leads to equality of the volume of demand and supply volumes. At the point of intersection of the curves of supply and supply, the equilibrium production is established and the equilibrium price is established.

Equilibrium price - the price that balances demand and proposal as a result of the action of competitive forces. The formation of an equilibrium price is a process requiring a certain amount of time. In the conditions of perfect competition, there is a quick mutual adaptation of the price of demand and suggestions of the sentence, the volume of demand and supply volume. As a result of the establishment of equilibrium, consumers and manufacturers won. As the price of equilibrium is usually lower than the price as possible by consumers, the value surplus (yougame) consumergraphically you can depict through the area limited to the maximum price and demand curves to the equilibrium point in turn, the equilibrium price is usually higher than the minimum price that the most advanced firms could offer.

If E is an equilibrium point, then the price for which goods are sold and purchased is equal to the R E, and the volume of sold goods is equal to q e. Consequently, the aggregate (total) revenue is TR \u003d PH x Q E. The total costs (costs) of manufacturers are equal to the area of \u200b\u200bthe OP MIN EQ E Figure.

The difference between the total revenue of the PH Q E and the total costs is over (win) the manufacturer.

Possible both the establishment of an accurate equilibrium price and small deviations from it. Market balance exists there and then, where and when the possibility of changing the market price or the number of goods sold is already exhausted.

There are two main approaches to the analysis of the establishment of the equilibrium price: L. Valras and A. Marshall. The main thing in the approach of L. Valras is the difference in the amount of demand (sentences). If there is an excess of demand for the price of P1:, as a result of the competition of buyers, the price increases until the excess disappears. In the event of an excess supply (for price p 2), the competing of sellers leads to the disappearance of excess.

The main thing in the approach of A. Marshall is the difference in prices. Marshall comes from the fact that sellers first respond to the difference in the price of demand and the price of the offer. The more this gap, the more incentives for the growth of the sentence. An increase (reduction) of the supply volume reduces this difference and thereby contributes to the achievement of the equilibrium price. A short period is better characterized by a model L. Valras, a long-term - model A. Marshall.

The simplest dynamic model showing decaying oscillations, as a result of which the balance in the industry with a fixed production cycle is formed (for example, in agriculture). When manufacturers, making a decision on production on the basis of the prices existing in the previous year. No longer can change its volume.

Equilibrium in the web-like model depends on the angles of inclination of the demand curve and the supply curve. Equilibrium is stable if the angle of inclination S is the cooler of the demand curve D. If the angle of inclination of the demand curve D is a cooler of the angle of inclination of the sentence, then the oscillations are explosive and equilibrium does not occur. If the angles of inclination of the curves of supply and supply are equal, then in this case the price performs regular oscillatory movements around the equilibrium.

We will introduce the concept " offer function ».

The proposal function is expressed by the equation showing the quantitative relationship between the offer of the good and all the factors that determine it.

Offer function can be written as:

Q. S \u003d. f.(P. g, C. g, s. 1 … s. n, c. 1 … c. m, U., P. E G)

In this expression Q. S is a good offer that is a function from P. G - the real price of this good (its changes and generate traffic on the proposal curve), as well as C. G - costs for the creation of the proposed good, s. 1 … s. N - the profitability of substitute goods, c. 1 … c. M - the profitability of complementary goods, U.- unpredictable events and P. E G is the expected price of this good (changes of which determine the shifts of the demand curve itself).

The proposal function can be represented in the abbreviated form - only as a dependence on the real price of this good. The proposal function can be represented, for example, as a certain abstract linear function (equation 2.4) and as the same function with some conditional numeric values \u200b\u200b(equation 2.5), which is depicted in Fig. 2.6.

Q. S \u003d - c + DP.(2.4)

Q. S \u003d - 20 + 4p.(2.5)

Fig.2.6. Linear supply function for equation 2.5.

Equilibrium on a separate commodity market.

Price and equilibrium.

We now ask the question: what will be the real market price of good and its number sold on the market? To answer it, you can return to market demand and market suggestion and combine data from Tables 2.1 and 2.2. We will receive Table 2.3, which presents possible benefits of good and the corresponding values \u200b\u200bof market demand and market proposals.

If the price was 2 D.E. Behind the unit of good, then the market would be overwhelmed with the demand over the proposal and this gap (deficit) would be 80 units of good. In this case, part of the remaining consumers will be ready to buy goods at a price higher than 2 d., And sellers, of course, will not refuse to sell goods at a higher price.

Table 2.3

Market demand and market offer

As a result, the deficit would cause price increase and reduce the gap between supply and suggestion. The price would increase until equality between market demand and market proposal would be established on the market. As can be seen from Table 2.3, it will take place at a price of equal to 4 D.E.

If we assume that the price of good is 6 d., In that case, there is an excess of this good equal to 45 units. At such a price, sellers are ready to offer 90 units of good, but buyers are able to purchase only 45 units. Here, part of the sellers is ready to reduce the price, and consumers respond to this increase in purchases. As a result of the reduction in price, the excess will be reduced until the market has equality between market demand and market proposal.

When the amount of demand is equal to the value of the sentence, then they talk about market clearing .

Market clearing is such a situation whenvolumes Suggestions and demand correspond to each other; There is no deficiency, no excess.

Market Calculation Situations Responsible equilibrium price.

The equilibrium price is such a price that balances demand and supply and eliminates both the deficit and excess.

Price equilibrium correspond to equilibrium amount good

The equilibrium amount is the number of good that is sold at the price of equilibrium.

If there is an equilibrium price (and, consequently, equilibrium) in the market as a whole is observed equilibrium .

Equilibrium is such a state when there are no trends towards its change.

The free population movement constantly transfers to sellers and buyers information that stimulates them to maintain market equilibrium, constant restoration in case of temporary deviations.

In fig. 2.7 Presented market demand and market proposal, built on the basis of information table 2.3. Equilibrium designated point E.. Accordingly, the equilibrium price is indicated as R e, and the equilibrium amount of good as Q. e. The deficiency is equal to the difference between Q. D I. Q. S, and excess - the difference between Q.¢ s I. Q.¢ d. The arrows up and down along the line of market demand and suggestions indicate a tendency to maintain equilibrium.

Fig. 2.7. Establishing market equilibrium.

Equilibrium, in a particular case, can be shown through the solution of the simplest system of linear equations representing demand and supply. If you equate the demand function ( Q. D \u003d a - BP.) to the proposal function ( Q. S \u003d - c + DP.), I get:

a - BP. = -c + DP.

P. E \u003d ( a + C.)/(b + D.) (2.6)

Q. E \u003d ( aD - BC.)/(b + D.) (2.7)

Equations 2.6 and 2.7 show expressions for the equilibrium price ( P. e) and quantities ( Q. e).

They can be substituted with appropriate values. a, B, C, D from equations 2.3 and 2.5. In this case, we get that P. E \u003d 10, and Q. E \u003d 20. In fig. 2.8 shows equilibrium in the market, where the function of demand and supply are expressed by 2.3 and 2.5 equations.

Fig. 2.8. Market balance

Equilibrium shifts.

The equilibrium price is changing during shifts of the curves of supply and demand. As a result, a new equilibrium is established.

1. Changes in demand. If at least one of the non-price factors of demand changes, then the demand curve, as we already know, is also shifted. This leads to a movement along Curve offers to a new equilibrium point.

In fig. 2.9 shows hypothetical shifts of demand curve. Shift curve to the right from position D. 1 in the Regulation D. 2 means an increase in equilibrium price with P. 1 E BE P. E. 1 to point E. 2. At the same time, the equilibrium amount of good also increases with Q. 1 E BE Q. D. 1 in the Regulation D. 3 means a decrease in the equilibrium price with P. 1 E BE P. E. 1 to point E. 3. In this case, the equilibrium amount of good also decreases with Q. 1 E BE Q. 3 e.

Fig. 2.9. Changes to equilibrium as a result of changes in demand.

In this way, changes in demand are accompanied by similar unidirectional changes in the equilibrium price and equilibrium amount.This is due to the fact that the balance of equilibrium occurs along having a positive inclination of the proposal curve.

2. Changes in the proposal. If at least one of the non-price factors of the sentence changes, then the proposal curve is also shifted. This leads to a movement along the demand curve to a new equilibrium point.

In fig. 2.10 shows hypothetical shifts of the supply curve. Shift curve to the right from position S. 1 in the Regulation S. 2 means lowering the equilibrium price with P. 1 E BE P. 2 E and the corresponding equilibrium displacement from the point E. 1 to point E. 2. At the same time, the equilibrium amount of good, on the contrary, increases with Q. 1 E BE Q. 2 e. Shift of the curve left from the position S. 1 in the Regulation S. 3 means raising the equilibrium price with P. 1 E BE P. 3 E and corresponding equilibrium displacement from point E. 1 to point E. 3. In this case, the equilibrium amount of good, on the contrary, decreases with Q. 1 E BE Q. 3 e.

In this way, changes in the proposal are accompanied by multidirectional changes in the equilibrium price and equilibrium amount.This is due to the fact that equilibrium shift occurs along having a negative inclination of the demand curve.

Fig. 2.10. Changes to equilibrium as a result of changes in the proposal.

Table 2.4 summarizes the analysis of equilibrium shifts.

Table 2.4.

Changes in demand and suggestions and changes to balance.

LECTURE

SENTENCE. The magnitude of the proposal. Offer function

Sentence (from English.suppluS) - The relationship between the price and the number of economic good, which the manufacturer wants and is ready to offer for sale for some time interfer.

This definition does not provide a qualitative or quantitative assessment of the mentioned dependence. It is emphasized only the need for manufacturers of desire to sell some benefit on the market and willing to do it. Specify the quantitative side of the dependence in question, if you specify the manufacturers from one of the following questions:

Ø "What is the maximum amount of good you are ready to sell with this value of the price?"

Ø "With what minimum price value are you ready to sell this amount of good?"

As an answer to these issues, we obtain the fact that in economic theory is called the value of the prediction and the price of the sentence, respectively.

The value of the sentence - The maximum number of economic benefits that manufacturers want and will be ready to sell with this price value.

Price offer - the minimum price value in which manufacturers want and will be ready to sell this amount of economic benefit.

If we assume that such questions are given regarding all possible values \u200b\u200bof prices or volumes, and the answers are applied in the respective coordinates (q - quantity, p - price), then the curve. Connecting the points obtained is called the supply curve.

Law Offers: with increasing the price of the economic good, the value of the proposal is growing, that is, there is a positive dependence between the price of goods and the value of the proposal.

Mathematically, the law of proposals can be expressed by the proposal function.

Offer function

The dependence of the proposal from the determining factors is called offer function .

The proposal function can be represented as follows:

QSA. \u003d F (PA, PB, L, T, N, ...)

where QSA. - the volume of offers of goods A during a certain period of time

R. - price of goods A,

RV ...Pz. - prices of other goods,

L.- the amount characterizing technical progress,

T. - The value characterizing taxes and subsidies /

N. - the value characterizing the natural and climatic conditions,

... - Other factors affecting the offer.

If you imagine that all factors defining the proposal of the goods, in addition to the price of the goods itself, do not change, then the proposal function will take the type of product offer function from its price.

QSA. \u003d Q (PA)

The function of the offer from the price, as well as the function of demand from the price, can be represented in the following ways.

https://pandia.ru/text/80/079/images/image002_193.gif "Align \u003d" Left "width \u003d" 293 "height \u003d" 157 "\u003e The supply line tilt reflects the proposal law: with increasing prices increases the amount of supply. Therefore, for most goods and services, the offer line has a positive slope.

The proposal schedule can be obtained using the proposal scale data or by building a schedule of the proposal function from the price.

In this case, the proposal line demonstrates that at a price p \u003d 6 of monetary units, the volume of sentences: will be QS \u003d 16 thousand units per month; This state of the market corresponds to the point A line S.

If the price in the market decreases to p \u003d 3 of the monetary units, the amount of supply will decrease to QS \u003d 7 thousand units per month. This market situation reflects the point in the offer line.

Examples of the proposal curve

When studying this topic, it is very important not to confuse such concepts as " sentence"I. "Value of the proposal." The offer reflects the volume of planned sales at all possible levels of the price of goods or service, that is, graphically represents the entire schedule of the proposal curve. The value of the proposal is the number of good that sellers are ready to sell at a particular price level, represents one point on the schedule of the supply curve.

Increasing the offer means that at each level of prices, manufacturers are ready to sell a greater volume of goods than before. With increasing supply, the proposal curve shifts to the right - down.

The supply reduction means that each time the price level producers are ready to sell a smaller volume of goods than before. When the proposal is reduced, the proposal curve shifts left-up.

Knowing the equation or graph of the sentence curve, you can determine the amount of supply at any price. In this way:

Ø change sentence - this is a shift of the entire proposal curve, that is, a change in the value of the proposal for all possible values \u200b\u200bof the price of the Economic Board;

Ø changing the value of the sentence - This is a shift along the proposal curve associated with the change in the price of the Economic Board.

When the price is reduced, manufacturers will be inclined to offer a smaller amount for sale. With the increase in the price of goods consequences are directly opposite (Fig. 2).

Fig.2 of the consequences of changing the price of the Economic Board

We now consider non-price factors of the sentence, that is, the parameters affecting the planned sales volume of manufacturers and causing the shift of the proposal curve.

Independent proposal factors:

Resource prices;

Technology;

Subsidies;

Number of manufacturers;

Expectations of manufacturers;

Other factors.

Prices of resources

Manufacturer in order to produce any product, it is necessary to use economic resources. As we already know, the proposal reflects the minimum price for which the manufacturer is ready to put this volume of goods on the market. The change in the price of economic resources will lead to the fact that the cost of production of this product will increase.

Therefore, at this level, the manufacturer will not receive the expected profit or does not cover the costs of its production at all. Thus, with raising resource prices, the manufacturer will be forced to either increase the price of the offer with each of the levels of the number of goods, or reduce the volume of supply at each of the possible levels of the price. In any case, the transfer of this product on the market is reduced and the proposal curve is shifted to the left - up. The fall in prices of resources is accompanied by the inverse consequences.

Increase resource prices Reduced resource prices

Fig. 3 Consequences of resource prices

Technology

Under technology, you can understand a certain way of organizing the process of using economic resources to obtain a certain product or service. Thus, the improvement of technology can be considered the creation of a new production method, which will make it possible for the same amounts of resources to produce a greater volume of products or, accordingly, the ability to produce the same volume of products with smaller amounts of resources. At the same time, the manufacturer will naturally be able to offer a greater volume of goods on the market at any of the possible levels of the price. Thus, when improving the product production technology, the offer of goods grows, and the schedule of the Curve of the Offer shifts to the right - down.

Fig. 4. Consequences of changes in prices of resources

It may seem that in the modern world, the situation of the deterioration of technologies is impossible in the situation of permanent scientific and technological progress. This is not true. Quite simple examples:

Ø The natural disaster seriously damages the power lines and power plants themselves, thereby forcing a significant part of the production to return to the use of manual labor instead of machines;

Ø One company initiates and wins a court matter against another, accusing it in the illegal use of patented modern technologies, which leads the guilty firm to the need to return to outdated technologies until the license is purchased or the development of its own solutions.

With the deterioration of the production technology of the goods, the offer of goods decreases.

Taxes on producers

The price received by the manufacturer for the goods is income for him. Taxes reduce the magnitude of this income of the manufacturer, because now it must be some part of the price of the goods to the state. Thus, the injection of the tax is tantamount to the manufacturer that it will have to receive a smaller price for each goods sold. Introduction or increasing tax leads to a decrease in the offer of goods. Reduced or cancel the tax leads to an increase in the supply of goods.

Fig. 5 consequences of changes to tax

Subsidies (Transfers) Manufacturers

Transfers increase the magnitude of the manufacturer's income, since now the state pays him some amount for each unit of goods. Thus, the introduction or increasing transfer leads to an increase in the supply of goods, but a decrease or cancellation - to the fall of the offer offer.

Fig. 6. Consequences of changes in transfers

Number of manufacturers

Obviously, twenty firms are able to offer more products to the market than one at the same price level. Thus, the greater the number of manufacturers, the higher the market proposal (with a decrease in the number of manufacturers, the offer of goods is reduced).

Fig. 7. Consequences of changes in the number of manufacturers

Expectations manufacturers

Expectations of manufacturers regarding future changes in the markets affect their offer of goods at the moment of time. If, for example, a communication salon expects the price of mobile phones of this model in the future, how will it change their offer at the current time? Most likely, the seller will prefer to sell more goods in the future, having received a high price for him. Thus, the proposal of this product will decrease today.

Fig. 8. The consequences of waiting for the price of the price of goods in the future

If the manufacturer suggests that a new, improved mobile phone model will be released, then, most likely, the proposal of the old model will currently increase, of course, you have come across such a phenomenon as seasonal sales, when firms are actively trying to sell, let And at discounted prices, the remains of old batches of products. Thus, various expectations of manufacturers have a different impact on the offer /

Other factors

There are many other reasons affecting the offer. This may be a change in the management of the company, the opening of new mineral deposits, weather conditions, political events, etc. Listed and consider the influence of all possible factors change the proposal, but we will try to summarize everything that we learned about the factors of the proposal.

Market Curve Offers

Addition of individual curves offers

The number of manufacturers has a positive effect on a market proposal. With an increase in the number of manufacturers on the market, a greater amount of economic benefit may be proposed at each price level. In accordance with this statement, and the addition of individual individual curves of proposals is made to obtain a common market curve: with each possible price level, it is necessary to add the values \u200b\u200bof individual proposals of individual manufacturers. It is precisely the magnitude of individual proposals, that is, the curves of the sentences "are horizontally".

In order to fold the proposals curves, you can use the following scheme:

1. Determine the minimum price value in which at least one seller is present on the market.

2. We note what volume of goods is offered on the market at the price.

3. Determine at what price to the sellers operating in the market at the price of clause 1, the next seller will join (or sellers).

4. We note how the volume of goods is offered on the market by all sellers at the price.

5. We repeat steps from and 4 until all sellers will enter the market.

Example 1.

Consider an example of the addition of two curves of suggestions when manufacturers are ready to start offering the goods at the same minimum price Rmin. The offer of the first manufacturer is represented in Fig. 9 line 8. The proposal of the second manufacturer is represented by the line in these conditions the minimum price at which manufacturers are ready to offer the goods are the same and equal to Rmin. Consequently, the minimum price on the total value curve is Rmin. At a certain price level P2\u003e, the Rmin on the market has two manufacturers, ready to offer, respectively, the volume of goods, equal to: 1 02 \u003d

Fig. 9 individual and total

naya Market Curves Offers

Fig.9. Individual and total proposal curve

Example 2.

Consider an example of the addition of two shutdown curves when manufacturers are ready to enter the market at different minimum prices: Rmin1 and Rmin2. The offer of the first manufacturer is represented in Fig. 10 LINE S1, the proposal of the second manufacturer - the line S2.

In these conditions, the minimum price at which at least one manufacturer is ready to offer goods on the market, is the price of the first producer of Rmin1 (since Rmin1< Рмин2). Следовательно, минимальная цена на суммарной кривой предложения - Рмин1.

The second manufacturer begins to offer the goods on the market, when the price of goods rises to the level of Rmin2. At the same time, it is necessary to calculate what volume is already offered on the market at the price equal to RMA2. The second manufacturer at the price only enters the market, that is, the amount of its proposal is zero. However, the first manufacturer at the price equal to RMA2 offers some volume of goods in order to calculate what amount it offers, it is necessary to substitute the value of the Rmin2 price to the equation of the first manufacturer's dealerization curve.

Suppose that at the price the first manufacturer offers the volume of goods equal to Q1 at Rmin2. At a certain price P2\u003e Rmin2 on the market there are both manufacturers, ready to offer, respectively, the volume of goods, equal to: Q2 + Q3 \u003d Q2.

https://pandia.ru/text/80/079/images/image014_21.jpg "width \u003d" 411 "height \u003d" 251 "\u003e

Fig. 10 Individual and Total Market Curves Offers

The equation of the total market curve of proposals can be obtained analytically based on the equations of individual curves of suggestions. To do this, you can use the following scheme:

1. Write the equations of individual curves of proposals in the form of functions: Q \u003d Q (P).

2. Fold the right parts of the equations obtained in accordance with the areas of definition.

3. Write an analytically a market proposal curve.

Workshop to secure the topic "Offer"

1. The table shows an individual scale of vegetable oil supply. Display analytically proposal function, if it is known that it is a continuous linear function.

P.

Decision : First, you will make sure that the offer feature presented tables is linear. Indeed, the increase in the price of one unit leads to an increase in the amount of goods per constant value (two units). We write the desired proposition function in general form: qs \u003d a + b ∙ p. In order to find unknown parameters A and B, it is necessary to substitute two price combinations and quantities :. We obtain that a \u003d 0 and b \u003d 2, from where qs \u003d 2 ∙ p.

Answer : QS \u003d 2 ∙ p.

2. The function of the proposal of the three manufacturers of goods are known: QS1 \u003d 1,5p - 1.5, QS2 \u003d 3P - 9, QS3 \u003d 5P - 25. Determine the function of the market supply, build a market proposal curve.

Decision : At the price of the product 1 -<3 на рынке будет действовать только первый производитель, то есть рыночное предложение составит Qs = 1,5P – 1,5. При цене 3≤Р<5 на рынке появится еще один производитель, и рыночное предложение на товар примет вид: Qs = 4,5P – 10,5. Наконец, при цене Р≥5 на рынке будут функционировать все три продавца, то есть рыночное предложение будет равно: Qs = 9,5P – 35,5.

Answer :

3. Known features of the proposal of three manufacturers of goods: QS1 \u003d 6P - 120; QS2 \u003d 8P - 400, QS3 \u003d 5P - 350. Determine the function of the market supply, build a market proposal curve.

Decision : At the price of the product 20 -<50 на рынке будет действовать только первый производитель, то есть рыночное предложение составит: Qs = 6P – 120. При цене 50≤Р<70 на рынке появится еще один производитель, и рыночное предложение на товар примет вид: Qs = 14P – 520. Наконец, при цене Р≥70 на рынке будут функционировать все три продавца, то есть рыночное предложение будет равно: Qs = 19P – 870.

Answer : .

4. Offer manufacturer of goods could be represented as
QS \u003d 2P-100. Two months later, the supply increased by 50%. Determine how much the value of the goods offer has changed at 80 rubles / pcs. Determine how much the price has changed, on which the manufacturer is ready to offer 60 pcs on the market. goods.

Decision : After an increase in the market proposal was:
QS "\u003d 1.5 (2p-100) \u003d 3r-150. We get that at a price of 80 rubles / pc. Market offer increased by (3 ∙ 80-150) - (2 ∙ 80-100) \u003d 30 pcs. Accordingly, the price that the consumer is ready to pay for 60 pcs. Goods, decreased by (50 + 0.5 ∙ 60) - (50 + 1/3 ∙ 60) \u003d 10 rub. / PC.

Answer : 30 pcs. and 10 rubles.

5. The offer of goods X can be recorded in the form of equation: QS \u003d 4P - 1000. As a result of improving technology, the offer increases by 20 units for each price. Determine the minimum price at which the offer of goods will exist after technological changes.

SUPPLY (Supply) - This is the amount of goods that sellers (manufacturers) are ready to submit to the sale at the given time.

The value of the sentence - This is the amount of goods that sellers are ready to offer on the market at the same price.

Law of Offers It is expressed in that, as a rule, with other things being equal, the higher the price, the greater the value of the proposal.

The conditions under which the amount of supply is being formed is called factors of the sentence .

The factors of the sentence are:

Price of this product (P) -) - (price factor) ;

(Independent factors):
Prices for other goods - compliments (RC) and substitutes (PS);
Production costs (C);
State policy in the field of production (taxes and subsidies) (G);
Level of technology, management and organization of labor (Tech);
Number of firms on the market (N);
Available production facilities (M);
Objective (external) production conditions (O);
Market Information (INF);
Expectations of manufacturers (e).

By analogy with the function of demand, the proposal function reflects the dependence of the magnitude of "S" from the factors determining it:

Q s \u003d f (p, p s 1 ... p s n, p C 1 ... p c m, c, g, tech, n, m, o, inf, e).

Function offer from the price:

Q s \u003d f (p).

In a linear form, the proposal feature is as follows:

c. - minimum sales of goods in the market,

d. - The dependence of the change in the proposed product volume from the price change (simultaneously reflects the angle of inclination of the proposal curve),

p. - price for goods.

The plus sign in the formula speaks about the positive inclination of the proposal curve.

Curve Offers - Graphic image of the relationship between the price of goods and the value of the goods offer in the market.

Movement along the supply curve is the change values offers, when changing the price.

The offer reaction is due to the fact that:

Firms engaged in the industry, with raising the price, use backup or fast introduced new capacities, which leads to an increase in supply;

In the case of a sustainable increase in the price of this industry, other manufacturers are rushed, which further increases the production and supply of goods.

The prosecution curve is based on the assumption that all factors other than the market prices remain unchanged. It has already been indicated above that in addition to the price of the volume of supply, many other factors affect. They got the name of nonsense. Under the influence of changes in some of them, the proposal value changes at each price. In this case, it is said that there is a measure of a sentence. This is manifested in the mixing of the PRESSION curve to the right or left.

When the offer is expanding, the curve s 0 shifts to the right and occupies the position S 1, in case of aution of proposal, the proposal curve will shift to the left to the position S 2.

Among the main factors capable of changing the proposal and shift the curve s to the right or left, it is possible to distinguish the following (these factors are called nonsense determinants of the proposal):

1. Prices of resources used in the production of goods. The more the entrepreneur must pay for labor, land, raw materials, energy, etc., the lower its profit and the less his desire to offer for sale this product. It means that in the utension of the price of the prices of the used factors of production, the offer is reduced, and the decrease in prices for resources, on the contrary, stimulates the increase in the number of goods offered at each price, and the proposal increases.

2. Technology level. Any technological improvement, as a rule, leads to a reduction in costs for resource (decrease in production costs) and therefore accompanies with the expansion of the goods supply.

3. The objectives of the company. The main goal of any firm is the maximization of profits. However, often firms may pursue other purposes, which affects the proposal. For example, the firm's desire to produce goods without environmental pollution can lead to a decrease in the number of goods offered at each possible price.

4. Taxes and subsidies. Taxes affect the costs of enterprises. Tax growth means the increase in production costs for the company, and this, as a rule, causes a reduction of proposals; Reducing the tax burden has usually reverse effect. Subsidies lead to a decrease in production costs, therefore the increase in subsidies to business is definitely serializes the expansion of production, and the proposal curve is dumbfounded.

5. Prices for other goods can also affect the offer of this good. For example, a sharp increase in oil prices can lead to an increase in coal supply.

6. Expectations of manufacturers. Thus, the expectations of the manufacturer, the possible increase in prices (inflation expectations), are an ambiguous impact on the supply of goods. The proposal is closely related to investments, and the last couple-ko and, most importantly, it is difficult to respond to the market conjuncture. However, in a mature market economy, the expected increase in prices for many products causes a revitalization of a sentence. In-federation in crisis conditions usually causes a decrease in production and a reduction in supply.

7. Number of manufacturers (degree of monopolization of the market). The more firms produce this product, the higher the presentation of this goods in the market. And vice versa.

Just as in the case of impact on the demand for price and non-seen factors, a change in the proposal and a change in the value of the proposal are separated:

The change in non-price factors leads to the displacement of the Saout Suggestion of the proposal to the right or left, since in this case the manufacturers at each price offer the market for another product (greater or less) the amount of this product. Such changes in the proposal can only be able to change in case of non-counseling determinants of sentences. Here we are talking about change sentence;

Whenever, as a result of some changes in the market, the value of the proposal is changing, and all factors affecting it, except for the price of the product X, remain unchanged, the curve of goods offer remains in the same place, moves along the curve offers. In such cases, with other things being equal, the amount of product X proposed by the trans-solder is changed. Here we are talking about changing the value of the sentence.

Also, as in the case of the law of demand from the law of the sentence there are exceptions. The most characteristic exception is offer in the labor market: With the growth of remuneration, people can afford to work less, longer highlighting on vacation and leisure time. That is, the increase in the hourly wage rate is more than a certain level (W 0) does not compensate for the loss of the value of free time, which you have to sacrifice for the sake of work.

Another analogue with demand is the existence of an individual and cumulative (market) proposal. The total offer on the market is obtained by summing up the supply of individual manufacturers and sellers of goods or services.