What Demand Determines

        
                                     
 Hello friends,



              We have recently been learning the concept of demand and what demand determines. We have also learned how to see what demand determines through demand graphs and demand curves. We have also learned about perfect competition, monopolistic competition, oligopoly and monopolies. Demand is known to control the market and how much suppliers should be purchasing to supply the markets needs with. I will start by talking about the concept of demand in the market, demand is based on the principle of a consumers desire and financial ability to purchase a good or service. Demand determines the outcome of businesses and economic growth. Demand is the key ingredient for business survival.

The next thing I would like to talk about is Perfect competition. Perfect competition is when there is no participant or business owner that has the market power to determine the price of a product. There are no barriers to enter or exit these types of markets. Perfect competitions are also not long term, if profit is to be made it must be made short term due to fluctuation in economic costs. There are very few of these markets today and an example of perfect competition would be buying and selling financial assets.

Monopolistic competition is when producers sell different items from one another but completely ignore competitions set prices. No business has total control over prices because  of the differentiation in products and marketing. A prime example of monopolistic competition would be restaurants, McDonalds sells things at a different price then Burger King. Although their products are similar they are not the substitutions for one another, they are not exactly the same and different economic costs and marketing schemes exist.

We also learned about Oligopoly which is a market form of small buyers dominating the market. There is complete control over prices. Due to the extreme similarities in market products, pricing must be controlled. There is also government in some industries such as the car industry. A good example of Oligopoly would be the cellular device market. 89% of the United States cellular device market is made up of four companies which are AT&T,Verizon,Sprint and T-Mobile. This shows a few companies dominating one market which is what Oligopoly is all about.

A monopoly is in my opinion the most corrupt kind of marketplace. A monopoly is a single based market,which means there is not competition. A single person or company is the only supplier of that specific good or service. They posses total control over prices because there is no fluctuation in the market and no competition. An example of a monopoly would be MPI, MlCC and Manitoba Lottery Corporation. These are all government run,supervised and corrupt by the government.





http://www.engadget.com/2013/10/28/apple-confirms-its-unclear-whether-there-will-be-enough-retin/
My Analysis
I really enjoy the topic of demand because demand is what makes the business world tick. Many jobs have been created through demand. If you have a product that is heavily demanded and you market and price correctly, you will be successful. Apples products have been in huge demand in recent years, everybody has an Iphone, Ipad or Ipod. They market extremely well but to me their prices are a bit expensive. They have much desired products and they have an amazing strategy which is the key to success. In the famous words of Johnny Giannakis " If you are selling pears and people want apples, put your head between your legs and kiss your a** goodbye from the business world. Wise words my friends, wise words.