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Factors Affecting Supply and Demand of LG G2

  1. What will be the possible factors impacting demand and supply of the said product on the market? Explain.

There is some possible factors that affecting demand and suppy of the LG G2 on the market. The factors that have an impact on demand are called the Determinants of Demand. There are a few factors that can impact the demand.

The income that earn by the individuals. The sum of most a household's salary, salaries, revenue, interest payments, rents, and other forms of earnings in confirmed time frame. If the consumers' earnings increase, they will purchase more luxury products such as expensive jewellery and smartphone. With their luxury purchase increase more rapidly than the increase in income. Products whose demand changes straight with income are known as normal product. For a standard good, when the income increase, the demand will also increase, demand curve shifts right. You can find some goods called second-rate good which income have an opposite impact. Turnips and second hand goods are the example of poor goods. For substandard goods, the demand will reduce as income rises, demand curve will shifts still left. The living standard change as the income change.

Price of related goods. There may be two types of product categories make a difference the demand of the goods which is alternative goods and complementary goods. Alternative goods is can be used in place of one another. When the price tag on other substitute for LG G2 reduce such as Apple, Samsung and etc, The demand of LG G2 will rises. This is because consumers have a tendency to get a cheaper product with a good quality. Other words, when the rivals reduce their prices, our demand will collapse because of the consumers conducts. Besides, there is a complementary goods will impact the demand. Complementary good means goods that the products must be use jointly such as smartphone and apps. A decrease in the price tag on apps results within an increase in demand for smartphone, and vice versa.

Expectations of future price changes. If people expect prices to rise in the near future they will make an effort to defeat the increase by purchasing early. For instance, if the consumers can get the price for LG G2 will increase soon, they'll buy it now and the demand will increase. The prospects that consumers have about future changes in prices and their own earnings have have an impact on their current purchases. Another example, if a majority of consumers expect the price tag on LG G2 will fall season, the existing demand for LG G2 decreases. It is because consumers will postpone their buys of the products before expected drop in price occurs.

Population. The size and make up of the populace affect demand. When there is a growing inhabitants more good is demanded. If the population is stable and there is an aging people, the demand will decrease anticipated to LG G2 is a modern technology which are suited to to the young era. Not absolutely all old era people can admit and know how to function it.

Consumer preferences. People's choices also affect buying behaviors. This is because everyone have different tastes and tastes predicated on their personality. For example, for those Apple users, they get used to the Apple product and could not only change the preferences. Consumer tastes are also influenced by current fashion or advertising. For example, individual gets influence by others such as family, family members and friends. Besides, advertising can also effect them by using attractive image. This is because the individual habit and their consumer preferences.

Number of purchasers. When the amount of customers for LG G2 rises, more purchases are made. This is because if the amount of potential buyers increase, the consumers can get the goods easily. If the product can get it only at a few location, the consumers will feel difficult and hard to get it and will get another product which can obtain it more easily. There are some factors that have an impact on the supply in the market which can cause an increase or a decrease in a product's source. The factors that influence supply are called theDeterminants of source. There are many factors that can impact the resource.

Number of providers. A rise in the amount of suppliers will increase the supply. The larger the number of suppliers of the good, the greater is the supply of the good. This is because if the merchandise is produce more in the market, you won't face the surplus in the market and the consumers can get the merchandise easily. This will likely tend to improve the sales and the source curve will change to the right. LG company can improve the development for LG G2 to fulfill the consumer in the market.

The cost of creation. A rise in the price tag on fruitful resources which is the suggestions price for LG G2 like the copper and the wiring lead to an increased cost of creation, thus lead to lowers supply and change left. Besides, government treatment such as taxation and subsidy will influence the price tag on production. For instance, the LG company which is a Korean company, they produce their product and export to other countries will billed on the taxation. If supply the tax on the seller, the price will be higher and the supply will lower. If the federal government give subsidy to vendor, the price will be lower and the resource increase.

State of technology. Technology level that will affect the development process and influence the supply on the market. With the boosts in the technology efficiency, more devices of good can be produced at every price, therefore the supply will increase. The LG company should increase their technology by use high technology machine have a tendency to lower cost and frustrating in the creation method. This will likely increase the source curve and switch left.

Producers expectation. If providers expect the price tag on the LG G2 to improve in the near future, this impacts the product's current source. For instance, LG company may know the price for smartphone will soon reduce. In this example, LG company provides the product as much as possible now, intend to raise its current resource. On the other hand, an expected climb in the price of smartphone, the LG company will hold back on the portions they make available to the marketplace, immediately lowering the development of the LG G2.

Price of related goods produced. A substitute in development for a good is another good that can be produced using the same resources. For the alternative product, if the price of substitute product lower, the supply of a good goes up. For instance, LG company produce many types of smartphone. In the event the other smartphone's price cut down, the LG G2 smartphone's source will increase. Besides, good that happen to be complements in creation if indeed they must be produced together. For complement products, if the price tag on the complementary increase, the supply of a goods increase with an optimistic relationship.

Changes in character. This will not happen in Malaysia but for LG company that from Korea. For example, an early frost, record high temperature ranges, a overflow, or an

Earthquake that make a difference the supply of many products. For instance, LG company will decrease the way to obtain their products include LG G2 smartphone due to the natural disaster. The marketplace source curve for LG G2 smartphone therefore will change to the right.

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