Concept, Elements and Relationship with the demand

We explain to you what the offer is, its characteristics and how it relates to the demand.Also, what are the elements that determine it.

The offer represents all the goods and services offered in a market.

What is Offer?

The term offer comes from the Latin offerre, which means offer .This word has different meanings, one of which could be defined as the promise to fulfill or deliver something.Also can be understood as a price reduction .But where the concept becomes more important is in Economy, where it is understood as one of the engines of the market.

The offer can be defined as the quantity of goods and/or services that different organizations , companies or people have the capacity and desire to sell in the market, in a certain period of time and space, in a particular pecuniary value, in order to satisfy wishes and/or needs.

The law of supply is understood as the variation of the disposition of goods and services in a market , whose changes are closely linked to the change in prices.If prices are high, supply increases, so that Rarely, if prices go down, the offer will do the same.

Elements of the offer

The price is the value of a product expressed in a given currency.

Some key elements of the offer are the following:

• Sales provision. In this case we talk about the wishes of the seller or producer to offer their merchandise or service.These wishes are usually determined by the prices of the offer, as explained in the law of the offer.If the prices are high, the sellers wish to offer their good or service.Otherwise, they often choose to keep it.


• Sellers. When talking about sellers, reference is made to physical subjects or to any type of organization or company that has the capacity to offer the goods and/or services.


• Quantity. In this case reference is made to the precise number of each product or service that sellers wish to offer in the market.


• Sales capacity. This element does not depend on the will of the sellers but rather on what they have the possibility to produce or offer in a certain period of time and at a certain price.


• Desires and needs. When talking about buyers' wishes, they don't talk about specific needs, but rather about desires.For example, I want a jacket or jacket of a certain brand.they are certain basic requirements of the people from whom they have been deprived, for example the need for shelter.


• Market. This is the place where goods and/or services can be exchanged for money.This space can be physical or virtual, for example through the Internet.


• Time lapse. In this case, reference is made to the cycle in which goods and/or services can be found in the market.They can be weeks, months, years.


• Price. When talking about prices, reference is made to the pecuniary value expressed in a given currency that the products and/or services possess.

Supply and Demand

Supply and demand determine the quantity of goods to be produced and their prices.

Supply and demand are two terms that are closely linked .When talking about demand, reference is made to the amount of goods and/or services that people wish to acquire.Offer is another of the engines of the market.

When these two market forces come together, the determinants of are the quantity of goods and/or services that will be produced and at what price they will be sold .The presence of any other agent is not necessary to set prices in case of free and demand talk.

However, many times governments decide to intervene in the formation of prices and in the availability of products or services.To do this you can resort to various techniques, such as the delivery of subsidies so that prices they are smaller or the production increases.Sometimes you try to reduce that consumption or production and for this you can increase tax burdens.