On : My Experience Explained

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Factors Affecting Market Stability

In business, the market trend changes from time to time. even though some factors that will affect business stability is something that can’t be controlled, there is a need to make sure that you understand more about these things in order to know how to go about it. Every person venture into the business hoping that things are going to be smooth but unfortunately it’s something that doesn’t happen given that when it comes to the elements that influence business stability, they do not give a knock when they come. Since these are things that you expect will happen even though you do not know when that will be, it is good to make sure that you will have better plans for your business.

Demand and supply is amongst the elements influencing market stability. Demand and supply are the influencers of market stability. When it comes to consumers versus suppliers, the demand is something that will always be talked about, the supply and consumption of the same products will affect the market adversely. The prices of the supplies in the market will be determined by what amount is in the market and who are in need of those products and that is the reason whenever the demand is high, there are normally high prices and when the demand is low the prices too will go down. This is done in order to bring sanity in the market because if the products are not enough for everyone in need there must be a factor to determine who will get and who will go for other options and that will be the pricing factor and this is one of the effects that brings about market instability. This situation is however not permanent since the situation can change depending on how people will react since some people will react by coming up with more products when there is a shortage and this can cause a surplus in the market which will demand a drop in the prices.

Government policies. Government policies too bring a lot of changes in the market which can either be positive or negative. When it comes to policies or rules that have been given by the government concerning the business, there are always some expectations in businesses that can make some functions in the business so you must be in a position to grasp these changes as soon as they happen. When the government sets rules that are too hard for a business to thrive, you should know that business functions are going to be hard and everything will need to change in the business.

Changes too will occur as a result of technological advancements. Technology is another important element that will affect how the business world operates. Technology comes to improve how the business is done and this will bring positive changes in the world of business. The buyer will however pay for the production costs which must go high because of the increase in the prices of the production methods.

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