Market structure of bp

1205 Words Dec 31st, 2014 5 Pages
Market structure : there are a number of different buyers and sellers in the marketplace. This means that we have competition in the market, which allows price to change in response to changes in supply and demand. Furthermore, for almost every product there are substitutes, so if one product becomes too expensive, a buyer can choose a cheaper substitute instead. In a market with many buyers and sellers, both the consumer and the supplier have equal ability to influence price.
In some industries, there are no substitutes and there is no competition. In a market that has only one or few suppliers of a good or service, the producer can control price, meaning that a consumer does not have choice, cannot maximize his or her total utility and
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Elasticity : rising or falling price lead changes in quantity of demand, and the quantity of supply and this so-called elasticity the Job of elasticity measure the size of the change, which may have a significant impact or small, consumer and product behavior .
Elasticity of demand is measured as the percentage change in quantity demand divided by the percentage change in price .
Elasticity of supply is measured as the percentage change in quantity supply divided by the percentage change in price .

Supply and demand in the British Petroleum Company, constants in a great degree, and does not change
Because, goods which produced by the company of Gasoline, gas, oil, and other, which is a important need for the people , When the price rise or falling (globally) does not affect on the quantity of demand and supply
Equilibrium price which is very important for British Petroleum to that with stability of supply and demand for goods , in the event of rises or falling the price (Globally), but in the event of rising the price of gasoline and gas, oil and other goods in the British Petroleum company at a higher price than other companies, it will greatly affect on the quantity demand in the company, the buyers will going for purchase of

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