Pricing

Pricing is the creation of a price. In a market economy the price is made by supply and demand. The suppliers would like to get the price as high as possible and the consumers would like to pay as few as possible. Prices will be built if consumers and salesmen make an agreement of the exchange of goods.
Type of market
Oligopoly
There are many consumers but only a few suppliers.

Monopoly
There are many consumers but only one supplier.

Polypoly
Many suppliers are compared to many consumers. By the low market share of the individual supplier you call it "atomize market structure". You also call this market form competitive market.

Very important factors for
Suppliers
Cost of production
Amount of the market price
Speculation
Production facilities
Market position of the suppliers
engineering progress
national sanctions
quantity demanded

Consumers
Cost of production
Necessity
Available income
Quality of the product
Price of substitute (compensating) goods
Price of complementary (additional) goods
Quantity of supply

Law of supply
The supplier will offer more goods, if the market price is rising. (and backwards)

Law of demand
The consumer will demand more goods, if the market price drops. (and backwards)

Category:Microeconomics