▷ 9 Types of Supply in the Economy

  • Nov 09, 2021
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In the economy, supply represents the set of goods and services that are offered in a market to satisfy the needs of a consumer at a certain price, a price that is defined by the costs of production (direct and indirect), as well as external factors such as the behavior of the offer and the demand From the market.

The offer represents a important factor in the economy to meet the demand of consumers, if the market produces a lot of supply and little demand, the price of the goods and services offered low, otherwise if there is a lot of demand and little supply, the prices in the market tend to upload.

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Supply is a factor in the economy that tends to have a variant behavior depending on the type of product or service, the brand, the quality, the quantity, the market segment, among other internal and external factors of the bidder entity.

types of offer

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In this sense, different types of supply can be found in the economy based on different qualities or characteristics, such as: types of offers according to the offeror, types of offers in marketing strategies, types of offers in the stock market and types of macroeconomic offers.

The offer therefore represents a necessary and indispensable economic element for the proper functioning of the market.

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In this article you will find:

Types of offer according to the offeror

In the market bidders focus on meeting the needs of a target audience, finding different types of offer depending on them, these are: competitive offer, oligopolistic offer and monopoly offer.

Competitive Offer

The competitive offer is one in which the issuer providing the good or service is free to bid competitivelygoes with other producers of the same category, being able to freely determine the price, being in total discretion of the consumer the choice of the most convenient good or service, due to its price or other qualities such as brand and quality.

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Oligopolic Offer

These types of oligopolistic offerings are controlled by small producer groups of a good or service, in which the demand is significantly high in relation to the number of supplying producers, being the offering parties which determines the price and total quantity of goods and services that will be available to consumers in the market.

Monopoly Offer

In monopolistic offers, as opposed to oligopolistic, this is represented by a single producer of a good or service that operates the market, therefore, they have no competition, this being the only bidder, in which case the consumer has no other options to choose from.

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Types of offers in marketing strategies

For offers the products and services offered by economic entities, marketing offers different types of strategies that allow the products and services to be positioned more efficiently in the market, In this context we find: promotional offers, discount offers, among other types of strategies.

Promotion Offers

These promotional offers are those in which the bidder offers more than one product that are of interest to the consumer and whose purchase implies a lower cost than when buying the products separately, allowing the bidder to attract a greater number of consumers.

Discount Offers

Discount offers are a marketing method in which the bidder offers its products and services through a reduction in percentage terms in the price of the product, which implies a lower cost than its normal market price, the purpose of this type of offer is to increase demand and thus the sales margin.

Types of supply in the stock market

Through the stock market, economic entities seek to carry out financial transactions through supply and demand on the stock market, in which natural or legal persons can carry out two types of offer to attract investors, these offers are: private and public offer.

Private Offer

The private offering is one that occurs through the stock exchange in which a natural or legal person offers shares and other securities to a certain group of investors, in which only they have access to the offer.

With the private offering, the bidders seek to capture only the type of investors they want to attract through the offer on the stock market.

Public Offer

The public offering, as opposed to the private one, is one in which a bidder through the stock market offer financial assets to a general public so that any investor can access the offer.

These types of offers seek to attract a greater number of bidders through the sale of financial assets, as shares and thus obtain financial resources to finance their business projects of investment.

Types of supply in macroeconomics

In macroeconomics as a branch of the economy that analyzes market dynamics in a generalized way, one can find different types of offers, such as money supply and aggregate supply, as global indicators of the economy.

Money supply

The money supplyrepresents the amount of money in circulation available in the economy represented in coins and bills of legal circulation whose issuance is controlled by the central bank of each country through different monetary policies.

The money supply has a great impact on the economic behavior of a country, since it allows control inflationary situations, as well as domestic consumption activities, among others situations.

Offer added

The offer added as a macroeconomic factor It is represented by all the goods and services that can be produced by the companies of a country and that they are destined to the commercialization and sale to satisfy the demand in a determined time.

Therefore, the aggregate supply represents an estimate of the national production that will be generated in the economy in a certain period of time, depending on the price level present in the market.

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