The Determining Factors of Supply and Demand in a Market Essay
Economics is the study of the production and distribution of wealth and how resources are distributed for the production of goods and services within a social system. Economics provides the language, principles and a way of thinking to help people unravel why they have to make choices. (www.google.co.uk)
Throughout this assignment I am going to discuss the main factors that determine the quantities supplied and demanded in the UKmarket for shoes.
"Supply is the amount of goods available at a given price at any time. Demand is how many consumers desire the goods that are in supply."
When there are many people in the market, no one …show more content…
Demand can also be affected by changes in income. Income affects the choice and regularity of the purchase of shoes. A family with increasing incomes may find itself having more money available for the purchase of shoes. A family with decrease income, however, may find shoe purchase at the bottom of their priority. For a high-income area, you can expect a strong demand for brand names, particularly high-end types of shoes. Low-income areas are more likely to be price-conscious.
Fashion Trends and consumer tastes are another major factor that determines the demand for shoes as consumer tastes often change and fashion dictates what sells for shoes. Fashion creates demand for the current "must have" items and therefore if a specific shoe is in