The Uk Economy

The UK Economy Essay 1: Discuss the main factors modify produce price in the UK There are a wide range of factors which can affect the harvest-home price in the UK such as the demand and write out forces of the market, the be of the product, the structure of the market in which the firm operates, the objectives it pursues etc. In this essay, I will focus on two factors, which are the market structure, and the firms objectives and discuss the rest of factors briefly. When it comes to the stopping point of price by the demand and supply curves, the price of product is set when demand meets supply and market reaches equilibrium. When the demand of the product is greater than the supply of it, the price would be higher(prenominal) and when the supply of the product is greater than the demand of it, the price would be lower. Therefore, for the commerce to set proper prices, it will have to understand the responsiveness of demand for one product following a flip in the price of that product alone, which is the price elasticity of demand. (PED) Secondly, the personify of the product is a crucial factor since in the coherent run, the business will have to cope the products at the prices higher than the cost of producing them separatewise a loss will be made.

The costs of producing goods in the UK could be relatively high since the costs of labour in the UK are much higher than that of other countries, say, China, Vietnam, India etc. However, if the UK companies decide to build their factories in these countries and then sell back to the UK, costs could well be reduced largely. Thirdly, the fictitious character of market that the product is being sold in affects pricing decisions. I will illustrate the features of these different structures in name of pricing separately. In a perfect competition market, at that place are many buyers and sellers of a standardised product, so firms in this market are described as price takers, which operator they cannot individually influence control over the price. If they desire... If you want to approach a full essay, order it on our website: Ordercustompaper.com

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