Law of demand and law of Supply. Elasticity of supply and demand. Models of market and its impact on productivity. Kinds of market competition, methods of regulation of market. Indirect method of market regulation, tax, the governmental price control.
Market and its Functioning Market is an instrument or mechanism which is function on the definite space where customers and sellers with different goods and services are cooperating to each other. Markets are differing from each other with the specific of goods and also services but with the freedom of choice for customer. The main point in consideration of functions of the market is coming to the exposure of regularity of forming prises for goods and services under the influence of supply and demand. Law of demand Demand is forming by the customer which determines the structure and amount of bought products with definite prise in the definite period of time. That means the demand is forming from many factors. One of characteristics of demand is an interrelationship between prise and amount of demand. When the prise goes up, as a rule, the demand goes down and vice versa when the prise goes down demand goes up. This interrelation is formed as a law of demand. This law is formed with next factors: the first fa
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