On the contrary, the lack of substitute goods predetermines the absolute or relative inelasticity of demand.
Inelastic demand and other limits on complementary goods make it difficult to develop the market. This situation is aggravated by the fact that the buyer must usually purchase 2 products in order to get the full value from them. The inability of such products to develop the market arises from this dependence since when one product disappears from the market, the second automatically disappears too. There is a clear example. Imagine that cars running on gasoline have become unnecessary because of the development of electric cars. As a result, the number of gasoline sales will decrease very much and may stop altogether. As a result, as many as 2 products will disappear from the market, which will make it poorer and less diverse.
In his article, the author gives another example of such a negative impact highlighting that the problem of additional products is in the total value of using
In the case of computers, one firm typically produces the central processor while another firm produces the operating system, with electric instruments one firm will typically focus on the instrument itself (say the guitar) while other firms focus on the amplifying equipment. The video game industry is yet another example that embodies the characteristics of strictly complementary goods: a video game title has no use without the console and a gaming device has no use without a game
Summing up, it is necessary to emphasize that this thesis has many pitfalls and exceptions since the limit of this work were determined by the concepts of elasticity, like the market and the psychology of consumption. However, it is possible to single out one thing: substitute products obviously have a great influence on the development of the market, especially with perfect competition.
The labor market is an integral part of the structure of the market economy, which functions alongside other markets for materials, consumer goods, and services, housing, securities, etc.
In the labor market, one side is represented by jobseekers and the other by employers.
The labor market differs from the markets for ordinary goods. It has human factor regulators and social forces.
Labor, as well as purposeful activity and enterprise as the properties of labor, are inherent to a person from the very beginning. They have evolved and improved over many millennia, along with the development of human beings and society.
Join the activity of people in the primitive epoch practically coincided with the process of labor and was directed mainly to the extraction of food. Being engaged in hunting for wild animals, fishing, collecting edible shellfish, plants and other gifts of nature, people did not know other divisions of work, then on a floor and age.
Nowadays work is considered as conscious purposeful creative activity with an application by the person of mental and physical efforts for the reception of useful results in the satisfaction of the material and spiritual requirements.
Every person has a different degree of ability or inability to one or another type of activity.
The task of a manager is to help subordinates to choose for themselves the type of work, which corresponds to his professional abilities to the greatest extent. In many cases, employees do not achieve the desired results in work, are disappointed in their work only because they have not passed the professional selection, they were not helped in professional orientation.
Depending on the level of use of the able-bodied population, there are several interpretations of the employment of the population in the labor market: full, rational, efficient, socially effective, and potential.
The labor market is currently the most stable element of the Russian economy.
The labor market is understood as the sphere of formation and realization of the labor force demand and supply.
The price of the labor force is the salary.
The labor market has a number of features that distinguish it from the markets of conventional goods:
- An employed employee can look for other jobs both inside and outside the organization, and the employer selects candidates from both employed and unemployed employees;
- The labor force is not lost by the worker in the process of use;
- The structure of supply and demand is influenced by the level of awareness of the working-age population of the market situation, the socio-political situation and the opinion of each individual;
- significant differentiation in the structure of demand and supply, which increases with the development of the economy.
The labor market is in continuous motion. This is monitored by the Federal Employment Service, which also maintains relevant statistics.