Market economies are directed by pr

Market economies are directed by prices. Prices ration scarce recourses, and they motivate production. As a general rule, the scarcer something is, the higher its price will be, and the fewer people will want to buy it. Economists describe this as the rationing effect of prices.
Prices encourage producers to increase or decrease their level of output. Economists refer to this as the production-motivating function of prices. Prices send out "signals" to buyers and sellers, keeping the economy responsive to the forces of supply and demand.
In a free market economy, prices are determined by the interaction of the forces of supply and demand. Perfectly competitive markets are those in which many buyers and sellers, with full knowledge of market
conditions, buy and sell products that are identical to one another.
Demand is a consumer's willingness and ability to buy a product or service at a particular time and place. If you would love to own a new pair of athletic shoes but can't afford them, economists would describe that your feeling are desire, not demand. If, however, you had the money and were ready to spend it on shoes, you would be included in their demand calculations.
The law of demand describes the relationship between prices and the quantity of goods and services that would be purchased at each price. It says that all else being equal, more items will be sold at a lower price than at a higher price.
The degree to which price changes affect demand will depend upon the elasticity of demand for a particular item.
If total revenue increased following a price decrease, demand would be elastic. If the price decrease led to a decrease in total revenue, the demand for the item would be described as inelastic.
The demand for some goods and services will be inelastic for one or more of the following reasons:
· They are necessities.
· It is difficult to find substitutes.
· They are relatively inexpensive.
· It is difficult to delay a purchase.
Sometimes things happen that change the demand for an item at each and every price. When this occurs, we have an increase or a decrease in demand.
Supply, which is the quantity of goods or services that sellers offer for sale at all possible prices at a particular time and place, varies directly with price. In other words, at a higher price, more goods and services will be offered for sale than at a lower one, and vice versa.
The price at which goods and services actually change hands is known as the equilibrium, or market price. It is the point at which the quantity demanded exactly equals the quantity supplied. Market price can be represented graphically as the point of intersection of the supply and demand curves.
Shifts in demand or supply will affect market price. When everything else is held constant, an increase in demand will result in an increase in market price, and vice versa. Similarly, an increase in supply will
result in a decrease in price, and vice versa.
The market price is the only price that can exist for any length of time under perfect competition conditions. Perfect competition exists when the following conditions prevail:
- Buyers and sellers have full knowledge of the prices quoted in the market.
- There are many buyers and sellers so that no individual or group can control prices.
- The products are identical with one another. Therefore, it would not make sense for buyers to pay more than the market price, nor for sellers to accept less.
- Buyers and sellers are free to enter or leave the market at will.



There are numerous reasons that make people think about owning a business of their own. Personal independence, unlimited profit potential, the opportunity to work at something that they really love and at hours they choose are some of the reasons people have given for trying entrepreneurs. Many business leaders begin their careers as entrepreneurs after four years of undergraduate college training and even additional graduate school training. Others become successful entrepreneurs without special training.
Many colleges now offer programs that teach students how to start and operate a business. Basic information is combined with hands-on experience and the advice of successful business consultants. These programs help potential entrepreneurs decide whether their own ideas are good and how to
follow through with them. With the high rate of business failure, this approach can prevent personal financial losses.
A common way to learn about business, and the opportunities for starting one similar to it, is to learn while working for someone else. It provides a source of steady income to people while they are planning to start their own businesses. About 50 percent of entrepreneurs start their businesses in industries
in which they have some experience.
Evidence shows that people who come from families whose members were in business themselves are more likely to start their own companies. Unfortunately, the record shows that two out of three new businesses fail within their four years.
Small businesses face many problems. Bad economic times affect small business more than they do big business. In addition, small business profits tend to fall faster, and small businesses are more likely to fail.
What are the problems that face small business now? In January, 1985 the National Federation of Independent Business reported that the four top problems facing small business at that time were taxes, slow sales, the high cost of borrowing money and competition from other businesses.
In a large business the tasks of organizing and operating are done by many hired managers.
A corporation is one kind of business organization. Other kinds of business organizations are sole proprietorships and partnerships. Sole proprietorships are the most numerous kind of business organization, but most are very small. The reason for their popularity is that they are the easiest and
least costly to organize.
Sole proprietors own all the profits of their enterprises, and they are their “own bosses”, free to make whatever changes they please. They have minimal legal restrictions and do not have to pay the special taxes placed on corporations. Sole proprietors also have opportunity to achieve success and recognition through their individual efforts.
There are also disadvantages. A very serious one is the unlimited liability that each proprietor faces. All debts and all problems associated with the business belong to the owner. A second disadvantage of the sole proprietorship is that it has limited capital. The money that a proprietor can raise is limited by the amount of his or her savings and ability to borrow. Also, when the owner dies, the business dies. Other disadvantages may include lack of opportunities for employees, limitations of size and lack of management resources.
A partnership is a business organization that is owned by two or more persons. Partnerships offer certain advantages over sole proprietorships:
— Partners bring additional funds to a proprietorship.

Результаты (русский) 3:

рыночной экономикой направляются цены.цены продуктовой скудные ресурсы, и они стимулируют производство.как правило, реже - то, тем выше его цена будет, и люди будут меньше покупать его.экономисты описать это, как распределять действие цены.
цены поощрения производителей увеличить или уменьшить объем их выпуска.экономисты называют это, как производство мотивации функцию цен.цены отправить "сигналы" для покупателей и продавцов, сохраняя экономику восприимчивой к силам спроса и предложения.
в свободной рыночной экономике, цены определяются взаимодействием факторов предложения и спроса.вполне конкурентоспособными рынками являются те, в которых многие покупатели и продавцы,с полным знанием рынка
условия, покупать и продавать продукты, которые идентичны друг другу.
спрос потребителей, готовность и способность купить товар или услугу в определенное время и место.если вы хотели бы себе пару новых спортивную обувь, но не могу позволить себе их, экономисты, описать, что ваши чувства желания, не требует.если, однако,вы были деньги и были готовы тратить на обувь, вас будут включены в их спроса расчетов.
закон спроса описывает взаимосвязь между ценами и количество товаров и услуг, которые будут приобретены на каждую цену.он говорит, что при прочих равных условиях, более пунктов будет продано по более низкой цене, чем по более высокой цене.