Market Analysis

Analysis on Market Structures
Student’s name
Principles of Microeconomics ECO204
Nicholas Bergan
Date
 

Analysis on Market Structures
Most economists have the notion that there exist different sellers and buyers who can be found in the marketplace. The availability of sellers and buyers often brings about the idea of competition, which makes prices fluctuate due to the changes that are seen in demand and supply of goods and services. It is also vital to note that there are always substitutes for all products that are produced and sold in the market place. When particular products become expensive, buyers often opt to go for cheaper products as substitutes to ensure minimal spending capabilities on their side. Markets that have concentrated numbers of sellers and buyers often make the suppliers and consumers alike have similar abilities to make changes to the prices of goods and services (Hovakimian, 2006).
There are industries that lack substitutes, and such industries have zero competition levels, while in markets where there is only one supplier or few of them when producing different goods and services, can give producers the power to control price. In such situations consumers are often left to obey and follow the provisions of the supplier without any question because of their monopolistic nature. Such consumers have limited energy to maximize their potential and little influence when it comes to changing the prices of goods and services that are sold to …