Apart from that it has also created a very large number of jobs globally. In this way, the travel and tourism industry is a very important part of the world economy. The financial value that it creates annually runs in trillions of dollars.
In economics, supply refers to the quantity of a product available in the market for sale at a specified price at a given point of time. Unlike demand, supply refers to the willingness of a seller to sell the specified amount of a product within a particular price and time.
Supply is always defined in relation to price and time. For example, if a seller agrees to sell kgs of wheat, it cannot be considered as supply of wheat as the price and time factors are missing. Similarly, if a seller is ready to sell kgs at a price of Rs. Apart from this, the supply also depends on the stock and market price of the product.
Stock of a product refers to quantity of a product available in the market for sale within a specified point of time. Both stock and market price of a product affect its supply to a greater extent.
If the market price is more than the cost price, the seller would increase the supply of a product in the market. However, the decrease in market price as compared to cost price would reduce the supply of product in the market.
X has kgs of a product.
He expects the minimum price to be Rs. Therefore he would release certain amount of the product, say around 50 kgs in the market, but would not release the whole amount.
The reason being he would wait for better rates for his product. In such a case, the supply of his product would be 50kgs at Rs. Supply can be influenced by a number of factors that are termed as determinants of supply.
Generally, the supply of a product depends on its price and cost of production. In simple terms, supply is the function of price and cost of production. Some of the factors that influence the supply of a product are described as follows: Refers to the main factor that influences the supply of a product to a greater extent.
Unlike demand, there is a direct relationship between the price of a product and its supply. If the price of a product increases, then the supply of the product also increases and vice versa.
Change in supply with respect to the change in price is termed as the variation in supply of a product. Speculation about future price can also affect the supply of a product. If the price of a product is about to rise in future, the supply of the product would decrease in the present market because of the profit expected by a seller in future.
However, the fall in the price of a product in future would increase the supply of product in the present market. Implies that the supply of a product would decrease with increase in the cost of production and vice versa.
The supply of a product and cost of production are inversely related to each other. For example, a seller would supply less quantity of a product in the market, when the cost of production exceeds the market price of the product.
In such a case the seller would wait for the rise in price in future. The cost of production rises due to several factors, such as loss of fertility of land, high wage rates of labor, and increase in the prices of raw material, transport cost, and tax rate. Implies that climatic conditions directly affect the supply of certain products.
For example, the supply of agricultural products increases when monsoon comes on time.At school, studying economics, we came up with two acronyms for the factors affecting demand and supply. For demand, the acronym was alphabetnyc.com is only for non-price factors- PRICE is the most important factor out of all of them, but will not shift the demand curve- or supply curve for that matter.
Demand And Supply Analysis Of Amul. Demand and Supply Analysis 1. Demand indicates how much of a good consumers are willing and able to buy at each possible price during a given time period, other things constant.
2. The process to satisfy human wants/ needs/desires. Factors affecting the competitiveness of the dairy sector To assess the dairy sector’s competiveness, a performance analysis looked at five factors: demand conditions, market structure, factor conditions, related supporting industries, and government and the enabling environment.
India: Increasing demand challenges the dairy sector. Meeta Punjabi Dairy consultant New Delhi. Over the span of three decades, India has transformed from a country of acute milk shortage to the world’s leading milk producer, with production exceeding million tonnes in Some of the major factors affecting the demand in microeconomic: Demand for a commodity increases or decreases due to a number of factors.
The various factors affecting demand are discussed below: 1. Price of the Given Commodity: It is the most important factor affecting demand for the given.
The title of the project is “FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR TOWARDS AMUL BUTTER IN COMPARISON TO GOWARDHAN BUTTER AT PUNE CITY from Gujarat Co-operative Milk Marketing Federation (GCMMF), Wagholi, Pune”.Primary objective of study was to find factors affecting consumers buying behaviour towards Amu butter.