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zalisa [80]
3 years ago
15

Real life example of both factor markets and product markets?

English
2 answers:
klemol [59]3 years ago
4 0

A fast food restaurant buying the ingredients for its meals (type of input: capital)  If your product is “Allegra “, your product market (people with allergies)

morpeh [17]3 years ago
4 0

Factor markets

The market is the area that sells the products that have been manufactured. The possibilties of selling the manufactured products or goods will depend on:

  • quality of the product. There are different brands. Famous brands tend to be better than brands wich are not well know. The price of the product goes in their quality.
  • marketing techniques. If a product is well advertised, this product will sell.
  • the buyer's income / salary. If the client's salary is low, she/ he will probably buy less.
  • inflation rate. If the rate of inflation is high, prices will go up and this will also affect sales. If inflation goes up but salaries do not, this will make sales get lower.

Product markets

The product market is the area where products or goods are manufactured. The manufature of goods may depend on:

  • The stock of raw material. Raw material is the basis of manufacture and some raw material is conditioned by the weather conditions. If there are floods , crops may be affected and the amount of cereal ,milk , vegetable or fruit will be decreased. On the contrary, if the weather conditons are good, crops will be plentifull.
  • Quality of machinery equipment. To manufature good quality and fast , machines should be updated and effective.
  • Labour conditions. If workers are skilled and get good salaries and healthy working conditions, they will produce more and more effectively.
  • Government economic policies. Governments may issue policies to favour the manufacture of goods through subsidies. They may also enact laws to strike a balance between domestic and international markets.

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