1) What influences supply & demand in a market?
In business there are 5 stuff that can affect the supply and another 5 that affects the demand. These 5 non-price determines can either increase the S,D or decrease the S,D in different situations. For supply the 5 non-price determines are weather/Acts of god, technology , cost of resources, tax and subsidies, number of producers and price of related goods. At first I did not understand how these 6 would affect the supply, but after some think I understand it. For example, if the government increase taxes, the price to create the produces will increase. Since it now cost more, the producer can only produce less of the produces of the ska amount before the government increased taxes. The 5 Non price determines for demand are consumer Income, tastes and preferences. the price of related goods, change in future price and market size. If the consumers income increases, the consumers will likely to buy more since he/she has more money to spend.
2) How can economic sectors relate to each other?
3) What path do raw materials take to consumers?
For raw materials to become products, it takes a very long path. First, the material must be extracted from a place in order to create the product. Second, in most cases the material would be shipped or flew to a different country, these countries are usually poorer since the minimum wage is lower. If the wages are lower the company can earn more money, that is why the products are usually made in third world countries. After the products are made, the products will be sent around the world to the shops. At the shops the consumers can buy the product take has been transformed from raw materials to products.
4) How is equilibrium reached in a market?
For a company to find the equilibrium, it has to try setting the price at different ranges. This is because finding a equilibrium point is a natural process and cannot be calculated. A equilibrium point is when the market demand the producer supply meets, this means that the product would keep selling with no extra supply or too little supply.
5) How is price determined in a market?
The price of the product can be determined in the market by the 5 non-price determines of demand. In most cases the demand will only cause the price to change. This is because if the supply decrease or increases, it would not affect the costumers but affecting the company instead. However if the demand is high, the company would increase price to earn more money and at the same time keeping stable supply.
6) To what extent do companies compete indirectly with each other?
I think that companies would compete with other companies if they are trying to serve under the same topic but not the same thing. This is because if they were selling the something they would be direct compete like Starbuckes and Pacific coffee. Indirect companies would be like KFC and a sushi restaurant, they are indirect because they fit under the same category.