Turujõud

Turujõud is an Estonian term that translates to "market forces" in English. It refers to the aggregate economic forces that determine the price and quantity of goods and services in a free market. These forces are primarily driven by the interaction of supply and demand.

Supply represents the quantity of a good or service that producers are willing and able to offer for sale at various prices. As prices rise, producers are generally incentivized to supply more. Demand, conversely, represents the quantity of a good or service that consumers are willing and able to purchase at various prices. As prices fall, consumers typically demand more. The equilibrium price and quantity occur where the supply and demand curves intersect, meaning the amount producers are willing to sell at that price exactly matches the amount consumers are willing to buy.

Beyond the basic supply and demand dynamic, other factors can influence market forces. These include consumer preferences, technological advancements, the availability of resources, government regulations, and the presence of competition. For instance, a sudden increase in consumer popularity for a product will shift the demand curve upwards, potentially leading to higher prices and increased production. Conversely, a new, more efficient production method could lower costs and shift the supply curve downwards, leading to lower prices and greater availability. Understanding these market forces is crucial for businesses making production and pricing decisions, and for consumers making purchasing choices.