Should I Buy or Should I Sell Now?
Knowing when to buy or sell depends on the current state of the market. Being able to identify the supply available and the current market price of the item you wish to purchase will assist with this decision. When deciding on whether or not to buy an input to create an output, you will also need to have an idea of what the demand for the output will be.
Production Decisions in a Mixed Economy
As a business you need to study the market to determine what to make, for whom and how much you will make. You can determine how much of the product to make by deciding what you want to make and for whom you plan to sell the product to. By studying the market, you can determine what current supply and demand for the product and determine how the market will be affected if you were to begin producing the same product.
When Money Is Tight and Times are Hard
When money and resources are scarce, it may be a better choice to develop your product through knowledge, maintenance, etc. Even though it may seem that the business is not moving forward, the knowledge and maintenance you put into your business provide larger payoffs in the future.
To Increase Demand and Supply of Your Products
In order to increase demand for your product, you should determine the equilibrium price which is the price at which a consumer is willing and able to purchase the item and the producer is willing and able to sell at. When you are at the equilibrium price, there will be no shortages or surpluses of the product.
Tips for the game:
I would recommend building your foundation by purchasing land. Next, watch the two top sellers on the market. I recommend purchasing the top selling item first and supplementing with the second highest selling item. My decisions were then based on how the market was faring locally and determined if I should explore exporting some items. I attempted to keep my herd and crops to a decent size then halfway through the game I began acquiring knowledge and additional resources to maintain my business. In the end, I watched the prices and made adjustments as required in order to create the biggest profit. I didn’t do the best at this game; however, following these simple tips, I was able to increase my farms value from previous games.
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