Financial Leads and Requests > This page
Financial Instruments
Leads and Requests relating to Financial Instruments
We provide the following leads from requests received through our web site and they are listed according to the date that the request is published on this web site.
Recall, that we represent economic laws and theory using models; in this case we can use a demand schedule or a demand. Of the following would change.
Project Financing | Investments | Precious Metals | Real Estate Investment | Commodities | General Previous requests on Financial Instruments:Current | 57 | 56 | This page | 54 | 53 | 52 | 51 | 50 | 49 | 48 | 47 | 46 | 45 | 44 | 43 (Older)
- If you want to learn how to get more followers on Pinterest, this is the best place to start. Follow these top tips, tactics, and best practices here.
- A table that shows the quantity demanded at each price, such as the Price and Quantity Demanded of Gasoline table, is called a. The demand schedule.
- Answer: 3 ✅ on a question ➜ Dami ng face maskXIpinapakita ng demand schedule at demand curve na iyong nabuo ang iba't-ibangkombinasyon ng mga presyo at quantity demanded para sa face mask ni.
Date published | |
27 May 2013 | We are direct to our clients who request leasing of BG / SBLC. Our client can issue a Block Funds with the favor of the applicant. The Block Funds will cover the leasing fees + commission. We can negotiate any procedures but without to pay advance payment not secure (no one in this Global will accept to transfer funds by SWIFT against receiving an undertaken from unknown company. It's a real funny). If you have a real & serious Provider; we have many clients are serious & capable to issue Block Funds. Serious only contact with their procedures & we can close the deal ASAP. |
27 May 2013 | We are direct to a real buyer of BG / SBLC issue from any AA or A bank. He is requesting only instruments are issue & not fresh cut. From 10M till 500M If you have any provider with instrument already issue send me the Euro screen print & the price and procedures and we can close ASAP. Serious only contract. |
27 May 2013 | We specialize in issuance of Import Letter of Credit (L/C), Standby Letter of Credit (SBLC), Bank Guarantee (BG), Performance Guarantee/ Bond (PG/PB), Advance Payment Guarantee (APG), Tender Bond Guarantee (TBG) and Bank Comfort Letter (BCL). Register as member to see contact information. |
27 May 2013 | We offer seasoned and fresh cut bank instrument for lease/ sale, such as BG, SBLC, MTN, Bank Bonds, T strips and other. BG/ SBLC Financing can offer individuals and corporations Leased Instruments. Leased Instruments can be obtained at minimal expense to the borrower compared to other banking options. We also monetize bank instruments Register as member to see contact information. |
| 27 May 2013 | We seek a Provider for FC BG 47+2 with these procedures; TRANSACTION PROCEDURE: o Buyer sends letter of intent (LOI) to the Seller. The LOI should contain copies of Buyer's Passport, Company's Board Resolution, Client's Information Sheet (CIS), Non-Solicitation Letter, Fee Protection Agreement, Letter of Acceptance of Terms and Procedures, Proposed Tranching Schedule and Buyer's Company Certificate of Incorporation. o After successful due diligence, Seller countersigns LOI and returns to Buyer with Details of Issuing bank, passport copy, etc. This LOI automatically becomes a full commercial recourse contract. Both parties shall lodge the executed contract with their respective banks. o Within 24-48 Banking hours Buyer arranges and confirms window time (with its bank officer for Buyer's BG Receiving Bank Officer to contact Seller's Bank Officer by direct bank phone. During this bank-to-bank phone call, BG Issuing Bank Officer will confirm if Buyer and its Bankers are Ready and Able to receive and fund SWIFT BG MT760. Also Issuing bank`s officer confirm financial capability of the buyer. o Within 24 hours Seller's bank shall send MT-799 Pre-advice to Buyer's bank. (Pre- advice shall be valid for (4) four banking days only). 5. Within 1-12 banking hours, Seller shall send copy of the MT-799 Pre-advice to the Buyer for confirmation. Buyer's bank ……. Register as member to see contact information. |
20 May 2013 | 3X TIMES YOUR MONEY ON A BG DEAL We are looking for clients who want to join a BG Deal. The minimum is 5K usd. Larger clients can get a bigger stake. If you are serious, and ready to go, leave your name and number and I will explain fully on a call. |
20 May 2013 | We have direct providers of Fresh Cut Bank Guarantee (BG)/ Standby Letter of Credit (SBLC) which are specifically for lease. We deliver with time and precision as set forth in our agreement. Our terms and Conditions are reasonable. DESCRIPTION OF INSTRUMENT: (One Million Euro/USD) to Maximum of 50B Euro/USD (Fifty Billion Euro/USD). Frankfurt, Hong Kong, Any AA rated Bank in Europe or any Top 25 WEB. Leasing Price: 6.0% of Face Value plus 2% / Purchase price 40% + 2% commission fees to brokers. |
20 May 2013 | Owner's Procedures for a success deal: 1-We need the Geneo signed from Buyer (with Buyer offer on Geneo). 2-Owner will signed Geneo too and return back to Buyer. 3-Buyer will send INVITATION LETTER to the Owner for TTM, into the Buyer Bank. 4-Owner will deliver (personally) all documents (and Bonds) to Buyer's Bank Officer, after confirmation of POF. 5-Buyer's Bank Officer makes authentication and verification. 6-After authentication and verification, we have a successful deal. Owner's procedures are REALISTIC for Buyers with funds cash ONLY!! Note: Inform all your associates who mention the 'Fed' involvements in buying or financing Mexico Historical Documents and or China bonds, is not thru. Please take your time to educate your associates accordingly and stop this madness in the Historical Bonds Business. Unless you are fully qualified and know this business &/or a institutions RWA to buy, and are able to present POF B2B we cannot do business with you or your clients. |
20 May 2013 | We are presently offering BG/ SBLC/ MT103/ MT799 BLOCK FUND. Your bank will be in direct communication with the issuing BANK to confirm the providers capability. If you are looking for a swift-in and cash-out transaction, we can help and you are in the right place Bank Instrument depending on what the client can handle according to their credit requirement. You have to be in good position with your bank and bank officer, you must be able to prove fund as the principle client. NO NEED TO ASK YOUR FUNDER FOR AN ICBPO OR BCL. Request for the procedure if you are interested. Please only contact me if you know you have the financial capability and contacts to accomplish this transaction. There is an escrow option for payment if you have trust issues. Transaction can commerce within 3 Banking Days. Do not bother to contact me if you are looking for a free swift transmission/ messages because this transaction involves money. |
20 May 2013 | We are direct providers of Fresh Cut BG, SBLC and MTN which are specifically for lease, our bank instrument can be engage in PPP Trading, Discounting, signature project (s) such as Aviation, Agriculture, Petroleum, Telecommunication, construction of Dams, Bridges, Real Estate and all kind of projects. We do not have any broker chain in our offer or get involved in chauffer driven offers. We deliver with time and precision as set forth in the agreement. Our terms and Conditions are reasonable, below is our instrument description. The procedure is very simple; the instrument will be reserved on euro clear to be verified by your bank, after verification an arrangement will be made for necessary bank documents and stock testing expenses, the cost of the Bank Guarantee will be paid after the delivery of the MT760, DESCRIPTION OF INSTRUMENTS: 1. Instrument: Bank Guarantee (BG/SBLC) (Appendix A) We are ready to close leasing with any interested client in few banking days, if interested do not hesitate to contact me direct. |
20 May 2013 | We have BG/SBLC for Lease & Purchase, issuance from HSBC London/ Hong-Kong or AA rated Bank in Bank in Europe, Middle East or USA @ leasing rate of 6+2. Interested person (s) should contact us. Our Procedure, terms and Conditions will be forwarded to you upon contact. Register as member to see contact information. |
| 20 May 2013 | I have a buyer's mandate looking for real paper (MTN'S, BG'S, SBLC'S) if you have been trying to close a deal this is your golden opportunity to do so this buyer is very real and if you can produce paper that's real and can be purchased through desk / desk, DTC, DVP, E/C or MT103 please contact me but request you to be the seller's mandate / rep we can close very quickly if you bring the complete offer with all the necessay docs we can move fast to close. Register as member to see contact information. |
| 20 May 2013 | We seek a Provider for FC BG 47+2 with these procedures; TRANSACTION PROCEDURE: o Buyer sends letter of intent (LOI) to the Seller. The LOI should contain copies of Buyer's Passport, Company's Board Resolution, Client's Information Sheet (CIS), Non-Solicitation Letter, Fee Protection Agreement, Letter of Acceptance of Terms and Procedures, Proposed Tranching Schedule and Buyer's Company Certificate of Incorporation. o After successful due diligence, Seller countersigns LOI and returns to Buyer with Details of Issuing bank, passport copy, etc. This LOI automatically becomes a full commercial recourse contract. Both parties shall lodge the executed contract with their respective banks. o Within 24-48 Banking hours Buyer arranges and confirms window time (with its bank officer for Buyer's BG Receiving Bank Officer to contact Seller's Bank Officer by direct bank phone. During this bank-to-bank phone call, BG Issuing Bank Officer will confirm if Buyer and its Bankers are Ready and Able to receive and fund SWIFT BG MT760. Also Issuing bank`s officer confirm financial capability of the buyer. o Within 24 hours Seller's bank shall send MT-799 Pre-advice to Buyer's bank. (Pre- advice shall be valid for (4) four banking days only). 5. Within 1-12 banking hours, Seller shall send copy of the MT-799 Pre-advice to the Buyer for confirmation. Buyer's bank ……. Register as member to see contact information. |
| 20 May 2013 | We can deliver you Fresh Cut BG / SBLC, MTN Specifically for Lease @ (5.0 0.5 X)%. Intermediaries/ Consultants/ Brokers are welcome to bring their clients and are 100% protected We are direct to a provider for BG/SBLC specifically for lease, at leasing price of (5.0 0.5 X)% of face value, Issuance by HSBC London/ Hong Kong or any other AA rated Bank in Europe, Middle East or USA. Our BG/SBLC Financing can help you get your project funded, loan financing by providing you with yearly renewable leased bank instruments. We work directly with issuing bank lease providers, this Instrument can be monetized on your behalf for 100% funding: For further details contact us with the below information. |
| 20 May 2013 | I am seeking for Genuine Seller / Provider of LTN, BG, Bond. Only Direct Seller/Provider should contact. Register as member to see contact information. |
| 20 May 2013 | We can provide Bg or Sblc on lease of any amount If your bank can accept ktt and you are sure of getting funds with it ,kindly contact me asap Register as member to see contact information. |
| 20 May 2013 | I am looking to buy a BG for my own company and as a Mandater for three our companies. Can you help me? Register as member to see contact information. |
13 May 2013 | We are a wholly owned subsidiary of an Investment Bank and can offer all major Instruments to support Trade Platforms, including but not limited to, Fixed Income, Forex, et al. Amounts from USD 250k - USD 1M - USD 10M - USD 100M - and higher. Can issue for 1 month, 3 months or 1 Year. Can be extended into the second and subsequent years, by agreement. Monthly charges starting from 75 basis pts. Only genuine enquiries from named principals, will be answered. Register as member to see contact information. |
13 May 2013 | We offer seasoned and fresh cut bank instrument for lease/ sale, such as BG, SBLC, MTN, Bank Bonds, T strips and other. BG/SBLC Financing can offer individuals and corporations Leased Instruments. Leased Instruments can be obtained at minimal expense to the borrower compared to other banking options. We also monetize bank instruments Register as member to see contact information. |
13 May 2013 | Looking for a honest and reliable provider for lease Bank instruments for ongoing relationship. Our client's provider sadly passed away after ten years of successful business. Client consume about 1 instrument per week (average) ranging in value from 40M++ Flexible and negotiable in procedures. No upfront transmission fees. Serious offers from mandates are highly welcome. Register as member to see contact information. |
13 May 2013 | We specialize in issuance of Import Letter of Credit (L/C), Standby Letter of Credit (SBLC), Bank Guarantee (BG), Performance Guarantee/Bond (PG/PB), Advance Payment Guarantee (APG), Tender Bond Guarantee (TBG) and Bank Comfort Letter (BCL). Contact us for more details Register as member to see contact information. |
13 May 2013 | We deliver BG/SBLC from HSBC BANK PLC, leasing fee 6%, payment ICBPO. Register as member to see contact information. |
13 May 2013 | We offer fresh cut bank instrument for lease/sale, such as BG, SBLC, Leased Instruments can be obtained at minimal expense to the borrower compared to other banking options. This offer is open to both to all. If in need of our services. Register as member to see contact information. |
| 13 May 2013 | BG 73+2 50 BIL,84+2 78+2 5 BIL All demand Buyer BCL only then seller direct MT 760 BG 68+2 Seller need Letter of ready to receive MT 760 from buyer bank then seller preadvice BG 49+2 Seller need Buyer RWA 199 then seller Preadvice BG 47+2 Seller will RWA Sift first after bank to bank talk but purpose of BG use must be shown. Register as member to see contact information. |
| 13 May 2013 | 'Monetization and Trading' We can arrange for OWNERS of Bank Instruments to have their instruments Monetized within 72 hours or less. We also can have a portion of the cash funds received by the Owner to go into a Trading Platform with that has High Yield Weekly Profit Returns. Minimum is $10 Million USD and UP to NO Maximum. |
6 May 2013 | We are direct providers of Fresh Cut BG, SBLC and MTN which are specifically for lease, our bank instrument can be engage in PPP Trading, Discounting, signature project (s) such as Aviation, Agriculture, Petroleum, Telecommunication, construction of Dams, Bridges, Real Estate and all kind of projects. We do not have any broker chain in our offer or get involved in chauffer driven offers. We deliver with time and precision as set forth in the agreement. Our terms and Conditions are reasonable, below is our instrument description. The procedure is very simple; the instrument will be reserved on euro clear to be verified by your bank, after verification an arrangement will be made for necessary bank documents and stock testing expenses, the cost of the Bank Guarantee will be paid after the delivery of the MT760, DESCRIPTION OF INSTRUMENTS: 1. Instrument: Bank Guarantee (BG/SBLC) (Appendix A) 2. Total Face Value: Eur 5M MIN and Eur 10B MAX (Ten Billion USD). We are ready to close leasing with any interested client in few banking days, if interested do not hesitate to contact me direct. |
6 May 2013 | We are direct Provider of FC & SS BG/SBLC for Lease & Purchase. Interested Broker or Lessee should contact us. Our services include but not limited to structuring finance. Our Procedure, terms and Conditions will be forwarded to you upon your response. Register as member to see contact information. |
6 May 2013 | We offer leased instrument hsbc and barclays london clients pays the transmission fee then provider swift mt760 am direct to provider provider is 100% real and past performers swift copy is available we can close deal in less than 5 days. Please contact me on my private email. Register as member to see contact information. |
6 May 2013 | We can provide you and/or your client with a Proof of Funds by SWIFT confirming the availability of $100 Million to $500 Million for your trades or purchase of financial instruments. Complete bank to bank transactions utilizing only major money center banks around the world. We guarantee our performance. Register as member to see contact information. |
6 May 2013 | BANK INSTRUMENT DESCRIPTION: Instrument: BANK GUARANTEE Issuing Bank: HABIB BANK LONDON Age: FRESH CUT Term: One (1) year and One (1) day Currency: Euros Contract Amount:75 Million Euros (Euros 75,000,000.00) Issuing Fee:40% of Total Face Value Commission:2% of Total Face Value (1) buyer issues and delivers this loi/mou in english duly completed in all respects and signed with full banking co-ordinates, client information sheet, corporate resolution, copy of signatory’s passport, non-solicitation and fee protection agreement all fully signed and a tear sheet less than one week old, which is showing the fund amount enough to pay the first tranche. (2) this loi is submitted, seller accepts and countersigns the loi, making this a binding contract/mou (memorandum of understanding) complete with seller’s banking coordinates. (3) the seller’s issuing bank sends pre advice via mt799 in 5 days indicating the details of the instruments and that the instruments will be delivered via mt760 as well as requesting the payment commitment via a conditional swift mt 103 or icbpo via mt799. (5) within 5 banking days buyer sends a conditional swift mt103/23 or icbpo via mt799 in favour of the seller for the agreed amount; sent to the seller's banking coordinates with copy of swift confirmation (duly signed and stamped by sending …… Register as member to see contact information. |
6 May 2013 | Internal Block, Bank-to-Bank fax confirmation (No SWIFT) Must be executed on a first come, first serve basis. Amount: 500M UP TO 2B Must be owned funds by account holder; no provider or third-party circumstances Banks: The platform will consider banks, and branches in Europe, or US (not branches in Asia) Blocking: Internal, Confirmed by bank-to-bank fax only (No SWIFT) Structure: Contracts with partner-platform, JV with foundation: Client 75% / Foundation 25% (contact us for returns information) Client/submittal must be approved, and funds Blocked, with bank fax Fax confirmation only Submit KYC package quickly for compliance processing and pre-approval. |
| 6 May 2013 | MTN available. MTN SPOT available, SS MTN 65+2 AVAILABLE. Others available Register as member to see contact information. |
| 6 May 2013 | BG Available no upfront, 48+2.49+2,40+3.52+2. Upfront invoice 45+2 and 56+2,SS BG 68+2. Register as member to see contact information. |
| 6 May 2013 | Can you follow this purchase procedure or lease sblc as per his closing procedure as stated bellow, we can start the deal. If agreed please send me contract agreement already fill in signed/sealed by the provider/seller. receiving bank will be hsbc hk procedure : mt799---> icbpo mt799---->mt760----> disbursement of purchase or lease cost Procedures: |
29 April 2013 | I work with a Direct Lender out of the USA, who can provide Asset Monetization against ANY INSTRUMENT that can blocked with MT760 at TOP 50 BANK. Bank to Bank procedures. 1 - Contract No JVs. You must already OWN the Asset. |
29 April 2013 | We are licensed by I.F.S.A. of St. Vincent & the Grenadines in 2009. In line with our core corporate objectives, we offer the below 2 specific financial services: 1. Investment Loans Delivery is subject to our terms and conditions. |
29 April 2013 | I am writing to inform you that we are direct providers of Fresh Cut BG, SBLC, MTN, Bonds and CDs which we have specifically for lease. We do not have any broker chain in this offer or get involved in Chauffer driven offers. You are at liberty to engage our leased instruments into trade programs as well as in other project(s) such as Aviation, Agriculture, Petroleum, Telecommunication, construction of Dams, Bridges and any other project(s) etc you can use these bank instruments for Private Placement Platforms, Commercial Loan, Business Loans, Credit Lines and much more. All relevant business information will be provided upon request. If Interested kindly contact me via |
29 April 2013 | We offer BG/SBLC for lease with only ICBPO or MT799 No upfront fee, we can also monetize at 90% in 7 days. Minimum face value is 50M for ICBPO and 10M for MT799. The price for both is 8%*2%. Register as member to see contact information. |
29 April 2013 | I have a Provider that can deliver leased BG/SBLC Bank Draft, and we also discount/monetize BG's. instruments to Organisations or individuals with their preferred text verbiage as been approved by their bankers. If interested, get back to me Register as member to see contact information. |
| 29 April 2013 | BANK INSTRUMENT DESCRIPTION: INSTRUMENT : Medium Term Notes ('MTN') bank debentures ISSUANCE : Deutsche Bank TERM : Ten (10) years and one (1) day AGE : Slightly Seasoned CURRENCY : USD INTEREST : 7.5 % per annum in arrears CONTRACT SIZE : Fifty Billion (50,000,000,000.00 Euro) with R & E FIRST TRANCHE : Five Hundred Million (500,000,000.00) FURTHER TRANCHES : As agreed upon by buyer and seller CONTRACT START : November, 2010 INVOICE PRICE : 47% of face value SCREENING : BRUSSELS EUROCLEAR SBP or as agreed COMMISSION/FEE : 2% (two per cent) of face value to be split between buyer/seller sides Consultants TRANSACTION PROCEDURES 1. Buyer submits this Letter of Intent (LOI) / Memorandum of Understanding (MOU) with full banking Co-ordinates, and Client's Information Sheet, Non-Solicitation Letter, Copy of the Signatory's Passport, Corporate Resolution, etc. 2. after due diligence, the Seller signs, stamps and returns by Email the LOI with the PROFORMA INVOICE insert ISIN number, 'NO XS INITIALS' to the Buyer, which will become a Seller's full banking Co-ordinates. Email copies of this MOU will initiate the Transaction. 3. Buyer then issues and sends MT103/23 to Seller Bank for first Tranche. …….. Register as member to see contact information. |
| 29 April 2013 | We seek a Seller that can perform these procedures: 1. Both parties (Provider and Buyer) execute, sign and initiate the Letter Of Intent/ Deed of Agreement, which thereby automatically becomes a full commercial recourse contract. 2. After signing the Agreement and simultaneously with the return of the Agreement to the Buyer, the Provider and Buyer shall lodge their signed Agreements with their respective banks after the notarization of the contract. 3. Within Two (2) international banking days, the Buyer will instruct their Bank to issue RWA (verbiage attached) as Proof of Fund (POF) and email the verbiage to the Provider's Bank. The RWA can also can be swifted via MT799 to the Provider's bank to show their ability to pay for the instrument 4. Within three (3) banking days, upon satisfactory verification of the POF, The Provider will instruct his bank to send its confirmation(RWA) that it is ready, willing and able to issue the BG, via swift MT799 to the Buyer's bank. Please contact us with Seller moves first procedures! Register as member to see contact information. |
| 29 April 2013 | Please contact me in reference to your Petchili Bonds, offer. I have buyer. closing in Frankfort Germany. Price 300 Million minus 10% payout more or less then 5 days, TTM. in the Bank. I need clean KYC-Pol-Loe. not older then 3 days, all the documents, should be the same date. Register as member to see contact information. |
22 April 2013 | Need LTN bond, backed by the Brazilian Central Bank. If it is, then that buyer needs to provide: 1) Current Bloomberg Screenshot, and 2) A Custodial Bank Officer, to verify, that the LTN is for sale, by the Seller. Without these 2 items the buyer won't buy as this buyer will not deem it to be a real deal. |
22 April 2013 | Providers of Fresh Cut BG, SBLC and MTN which are specifically for lease. Our bank instrument can be engaged in PPP Trading, Discounting, Signature Project(s) such as Aviation, Agriculture, Petroleum, Telecommunication, Construction of Dams, Bridges, Real Estate and all kind of projects Register as member to see contact information. |
22 April 2013 | We offer seasoned and fresh cut bank instrument for lease/sale, such as BG, SBLC, MTN, Bank Bonds, T strips and other. BG/SBLC Financing can offer individuals and corporations Leased Instruments. Leased Instruments can be obtained at minimal expense to the borrower compared to other banking options. We also monetize financial Instruments Register as member to see contact information. |
22 April 2013 | SBLC MONETIZING I am direct to Trader, who owns Trade Platform. Have known gentleman for over 10 years. Brief Overview: - Direct to Trader - Trader in USA - Minimum 100M - Funds Fully Insured, thru IOLTA Trade Account - If investor will not move funds, investor will need to issue an SBLC, from Top World Bank. Trader will monetize SBLC and trade proceeds. - LTV 80% - If client has blocked funds, etc. same SBLC procedure. *After CIS, POF, Passport, I will arrange direct introductions between Investor and Trader. If interested, feel free to contact my offices. Register as member to see contact information. |
22 April 2013 | Venezuelan Bonds needed: 1. The Bonds must be on DTC, and must have a current Bloomberg, Screen printout. 2. Bonds must also be on Euroclear, with all Euroclear pages provided. 3. Bonds must be transferable to the Buyer, ie, Seller must be able to move bonds to the Buyer's bank in US. 4. Bonds must be verified via the Bond's Bank Custodial Officer. 5. Another option is to set-up a SICAV to deposit the Bonds into.Other Groups have done this. Once you have a SICAV you're a Private Bank and you can Monetize your own Bonds. Also a SICAV would give you leverage, with the Venezuelan Central Bank. |
22 April 2013 | DESCRIPTION OF INSTRUMENTS: 1. Instrument: Bank Guarantee (BG/SBLC) 2. Total Face Value: Min of 1M Euro/USD (Ten Million Euro/USD) to Max of 5B Euro/USD (Five Billion Euro/USD). 3. Issuing Bank: HSBC, London or Deutsche Bank Frankfurt or any Top 25 WEB 4. Age: One Year, One Day 5. Leasing Price: 5.0% of Face Value plus (0.5+X)% commission fees to brokers. 6. Delivery: SWIFT TO SWIFT. 7. Payment: MT-103. 8. Hard Copy: Bonded Courier within 7 banking days. All relevant business information will be provided upon request. If Interested kindly contact me via Email |
22 April 2013 | Need seasoned MTN, cash-backed, with minimum coupon, of above, 5% fixed. Buyer will pay 90 + 1, if from Top 10 or Top 25 banks. Register as member to see contact information. |
| 22 April 2013 | We request a SELLER that can perform these procedures for a 45+2 FC BG. Seller moves first: Closing Procedures for the Transaction: 1. Buyer issues and delivers the fully signed LOI contract with full Banking coordinates, CIS, Non-Solicitation, Corporate Resolution and a clear Passport Copy and FPA. 2. After DD Seller accepts and countersigns the LOI, seller notarizes and buyer incurs the payment of the contract making it a binding Agreement complete with Seller's Bank coordinates. And gives Bank Confirmation Letter and Authorization for seller's named bank officer for bank to bank verification by officer to officer call. 3. Within 72 international banking hours of the verification of both officers capability, seller will instruct his bank to send swift MT 799 Pre-Advise of the BG, which buyer shall instruct his bank to respond to, with swift MT 799 ICBPO 4. Upon receipt and satisfactory verification of the aforesaid Swift MT799, within 72 banking hours, the Seller's Bank shall Swift MT760 BG which shall contain the wording of the BG as attached to this Memorandum. 5. After verification and authentication of the MT760 from the seller's Bank, buyer shall release the full payment for the BG concerned within 72 banking hours + fees/broker's commission. Please contact us! Register as member to see contact information. |
| 22 April 2013 | We offer fresh cut bank instrument for lease/sale, such as BG, loan, SBLC, MTN, Bank Bonds, Bank Draft, T strips and other. Leased Instruments can be obtained at minimal expense to the borrower compared to other banking options and we also discount/ monetize BG's. This offer is open to both individuals and corporate bodies. If in need of our services, contact me for detail information. Register as member to see contact information. |
| 22 April 2013 | We request a SELLER that can perform these procedures for a 45+2 FC BG. Seller moves first: Closing Procedures for the Transaction: We request a Seller that has this BG. Instruments 'FRESH CUT' (CA Invoice Price: 45% +1+1% Delivery SWIFT MT-799 Pre-advice RWA / SWIFT BG MT760 / BG Hard Copy Payment SWIFT MT-799 ICBPO / SWIFT MT-103 or CASH Closing Procedures for the Transaction: 1. Buyer issues and delivers the fully signed LOI contract with full Banking coordinates, CIS, Non-Solicitation, Corporate Resolution and a clear Passport Copy and FPA. 2. After DD Seller accepts and countersigns the LOI, seller notarizes and buyer incurs the payment of the contract making it a binding Agreement complete with Seller's Bank coordinates. And gives Bank Confirmation Letter and Authorization for seller's named bank officer for bank to bank verification by officer to officer call. 3. Within 72 international banking hours of the verification of both officers capability, seller will instruct his bank to send swift MT 799 Pre-Advise of the BG, which buyer shall instruct his bank to respond to, with swift MT 799 ICBPO 4. Upon receipt and satisfactory verification of the aforesaid Swift MT799, within 72 banking hours, the Seller's Bank shall Swift MT760 BG which shall contain the wording of the BG as attached to this Memorandum. 5. After verification and authentication of the MT760 from the seller's Bank, buyer shall release the full payment for the BG concerned within 72 banking hours + fees / broker's commission. Please contact us! Register as member to see contact information. |
15 April 2013 | We offer fresh cut bank instrument for lease/sale, such as BG, SBLC, MTN, Bank Bonds, Bank Draft, T strips and other. Leased Instruments can be obtained at minimal expense to the borrower compared to other banking options and we also discount/monetize BG's. This offer is open to both individuals and corporate bodies. If in need of our services, contact me for detail information. Register as member to see contact information. |
15 April 2013 | We Are Direct Provider of BG, SBLC, at leasing price of 3.5% of face value,and purchasing price of 40% Issuance at HSBC Bank Plc OR Barclays Bank Plc UK Register as member to see contact information. |
| 15 April 2013 | I request you to send the bg or mtn ss cash backed on dvp or euroclear or desk to desk process, along with the copy of the instrument, LOI and MFPA, as I am the direct to the buyer the work will go fast. Register as member to see contact information. |
8 April 2013 | We are top rated financial services provider in the United Kingdom. We have the corporate mandate to offer the under listed financial services: 1. financial instruments We have successfully revolutionized the whole concept of international funding. |
8 April 2013 | Providers of Fresh Cut BG, SBLC and MTN which are specifically for lease. Our bank instrument can be engaged in PPP Trading, Discounting, Signature Project(s) such as Aviation, Agriculture, Petroleum, Telecommunication, Construction of Dams, Bridges, Real Estate and all kind of projects Register as member to see contact information. |
8 April 2013 | We offer fresh cut bank instrument for lease/sale, such as BG, SBLC, MTN, Bank Bonds, Bank Draft, T strips and other. Leased Instruments can be obtained at minimal expense to the borrower compared to other banking options and we also discount/monetize BG's. This offer is open to both individuals and corporate bodies. If in need of our services, contact me for detail information. |
| 8 April 2013 | HSBC BG NEW 30+2 Seller want ICBPO MT 799 first Register as member to see contact information. |
| 8 April 2013 | I can buy the BG if you can follow our simple 3 step procedures, what is the price and we will need you to sign an agreement with us and assign the BG for payment, see below . Photocopy of Bank Instrument registered at EURO/US $-clear or DTCC, including Extract of Registration (14 - 16 pages) Extract from registration of Bank Instrument at Euro-Clear (as confirmation of registration) |
| 8 April 2013 | IBOE 1 billion dollar IBOE for sale Register as member to see contact information. |
| 8 April 2013 | BG for sale HSBC 75+2, SBER bank Russia 10+2 both with preadvice Register as member to see contact information. |
1 April 2013 | Anyone who is interested in Lease or Full Purchase BG/ SBLC/ MTN please contact me for further information. Please note that our leased instruments are suitable for a trade. It might not be the cheapest but it is definitely suitable for trading. I also have programme that refunds the lessee's fees on utilising my JV partner monetisation services. Prices - 46+2 for full purchase FC BG from HSBC/ Barclays London or top 5 WEB. 29+2 for full purchase FC MTN from HSBC /Barclays London or top 5 WEB. Note that the above are for cash fund buyers not ones requiring their credit line activated in order to purchase. Please request for information if you are credit line clients. Submit with bcl, tear sheet and atv and KYC Passes DD then Contract Buyer/ Lessee swifts blocked funds (valid for 90 days or more) Seller /Lessor responds with MT799 preadvice Buyer/ Lessee authenticate and etc Seller/ Lessor responds with MT760 Buyer/ Lessee settles via MT103 etc etc If the buyer's bank can accept MT760 after the buyer's bank swift the blocked funds then this also be discussed. |
1 April 2013 | We are direct for our clients witch request to lease SBLC issue from AA bank. These are the logic procedures for serious provider: 1. Provider and Beneficiary execute, sign and initial a Deed of Agreement which thereby automatically becomes a full commercial recourse contract after Beneficiary application have been accepted. 2. After signing the agreement and simultaneously with the return of the agreement to the Beneficiary. 3. The Provider's bank and the Beneficiary's bank will start their Due Diligence and after positive result the transaction will start. 4. The Beneficiary's bank issues a confirmation for a Block Fund (with the face value of the leasing fees + commission) to the favor of the Provider by SWIFT. 5. The Provider after receiving the confirmation of the Block Fund will issue a pre-advice SBLC with the request text to the Beneficiary bank. 6. The Beneficiary bank will confirm the text and to receive the SBLC. 7. The Provider Bank will issue the SBLC by SWIFT to the Beneficiary bank. 8. The Beneficiary bank will transfer the request fees + commission by SWIFT. (*) The Block Fund will be with a face value = the leasing fees + the commission and to the favor of the Provider and valid ten banking days. (*) No body accepts to pay any transmission or advance fees. If you have a serious provider send me your offer & we can close very soon. Register as member to see contact information. |
1 April 2013 | We are direct Lessor ( Provider) of Fresh Cut BG/ SBLC for Lease. Interested Broker or Lessee should contact us. Our services include but not limited to structuring finance .Our Procedure, terms and Conditions will be forwarded to you upon your response via email. Register as member to see contact information. |
1 April 2013 | We have a direct provider of BG/SBLC instuments for lease and purchase. Register as member to see contact information. |
| 1 April 2013 | Here is the procedure we can set up with our monetizer, the instrument will be returned free of any lien 15 days prior to maturity. Please let us know as soon as possible if you can assist us in this venture. TRANSACTION PROCEDURE: 4. Before banker-to-banker call is completed, Lessor will notify who will be making the banker-to-banker call so the monetizer can notify their banker of the name of the person who will be calling. |
Previous requests on Financial Instruments:
Current | 57 | 56 | This page | 54 | 53 | 52 | 51 | 50 | 49 | 48 | 47 | 46 | 45 | 44 | 43 (Older)
Project Financing | Investments | Precious Metals | Real Estate Investment
Commodities | General
A Publisher Faces The Following Demand Schedule For The Next Novel
General information on Leads and Requests
Submit your request for publication in these tables
The above information is supplied to members and does not convey or imply a request, offer of solicitation from EagleTraders.com. EagleTraders.com does not take any responsibility in the correctness, lawfullnes or any other matter in these 'Lead and Request' pages and urge you to consult with your financial and legal advisors before acting on any of these leads. See also the Terms of use for other important information before acting on any information presented in this web site.
This service may be compared with an 'online dating service' where it is up to yourself to ensure your safety though certain checks before you meet your 'date' in person. Treat any transaction where you are required to pay certain fees in advance (e.g. for certificates from 'authorities' allowing the transfer of large amounts) with the utmost care.
Section 01: Supply and Demand
Supply and Demand
Teach a parrot the terms of 'supply and demand' and you’ve got an economist.
-- Thomas Carlyle
A market brings together and facilitates trade between buyers and sellers of a good or services. These markets range from bartering in street markets to trades that are made through the internet with individuals around the world that never have met face to face.
A market consists of those individuals who are willing and able to purchase the particular good and sellers who are willing and able to supply the good. The market brings together those who demand and supply the good to determine the price.
For example, the number of many apples an individual would be willing and able to buy each month depends in part on the price of apples. Assuming only price changes, then at lower prices, a consumer is willing and able to buy more apples. As the price rises (again holding all else constant), the quantity of apples demanded decreases. The Law of Demand captures this relationship between price and the quantity demanded of a product. It states that there is an inverse (or negative) relationship between the price of a good and the quantity demanded.
Demand Curve
Recall, that we represent economic laws and theory using models; in this case we can use a demand schedule or a demand curve to illustrate the Law of Demand. The demand schedule shows the combinations of price and quantity demanded of apples in a table format. The graphical representation of the demand schedule is called the demand curve.
When graphing the demand curve, price goes on the vertical axis and quantity demanded goes on the horizontal axis. A helpful hint when labeling the axes is to remember that since P is a tall letter, it goes on the vertical axis. Another hint when graphing the demand curve is to remember that demand descends.
The demand curve reflects our marginal benefit and thus our willingness to pay for additional amounts of a good. It makes sense that our marginal benefit, or willingness to pay for a good, would decline as we consume additional units because we get less additional satisfaction from each successive unit consumed. For example, at lunch time you decide to buy pizza by-the-piece. You'd be willing to pay a lot for that first piece to satisfy your hunger. But what about the second piece? Perhaps a little less. If we keep considering each additional piece, we might ask what the 3rd, 4th or 5th piece is worth to you. By that point, you'd be willing to pay less, perhaps much less. The law of demand and our models illustrate this behavior.
A more formal examination of the law of demand shows the most basic reasons for the downward sloping nature of demand. The first is the substitution effect which states that as the price of the good declines, it becomes relatively less expensive compared to the price of other goods and thus the quantity demanded is greater at a lower price. When the price of the good rises, the opposite occurs; that is, as the price of the good becomes relatively more expensive compared to other goods a lower quantity will be demanded. For example, as the price of apples increases or decreases, apples become relatively more or less expensive compared to other goods, such as oranges. Thus if the price of apples declines, consumers will buy more apples since they are relatively less expensive compared to other goods, such as oranges.
The second factor is the income effect which states that as the price of a good decreases, consumers become relatively richer. Now, their incomes have not increased, but their buying power has increased due to the lower price. If they continued to buy the same amount, they would have some money left over - some of that extra money could be spent on the good that has the lower price, that is quantity demanded would increase. On the other hand, as the price of a good increases, then the buying power of individuals decreases and the quantity demanded decreases. For example, at 20 cents per apple, we are able to purchase 5 apples for $1 but if the price falls to 10 cents, we would be able to buy 10 apples for $1. Although our income has not changed, we have become relatively richer.
At this point, we have explained why there is an inverse relationship between price and quantity demanded (i.e. we've explained the law of demand). The changes in price that we have discussed cause movements along the demand curve, called changes in quantity demanded. But there are factors other than price that cause complete shifts in the demand curve which are called changes in demand (Note that these new factors also determine the actual placement of the demand curve on a graph).
While a change in the price of the good moves us along the demand curve to a different quantity demanded, a change or shift in demand will cause a different quantity demanded at each and every price. A rightward shift in demand would increase the quantity demanded at all prices compared to the original demand curve. For example, at a price of $40, the quantity demanded would increase from 40 units to 60 units. A helpful hint to remember that more demand shifts the demand curve to the right.
A leftward shift in demand would decrease the quantity demanded to 20 units at the price of $40. With a decrease in demand, there is a lower quantity demanded at each an every price along the demand curve.
Factors of Demand
A change in tastes and preferences will cause the demand curve to shift either to the right or left. For example, if new research found that eating apples increases life expectancy and reduces illness, then more apples would be purchased at each and every price causing the demand curve to shift to the right. Companies spend billions of dollars in advertising to try and change individuals’ tastes and preferences for a product. Celebrities or sports stars are often hired to endorse a product to increase the demand for a product. A leftward shift in demand is caused by a factor that adversely effects the tastes and preferences for the good. For example, if a pesticide used on apples is shown to have adverse health effects.
Another factor that determines the demand for a good is the price of related goods. These can be broken down into two categories – substitutes and complements. A substitute is something that takes the place of the good. Instead of buying an apple, one could buy an orange. If the price of oranges goes up, we would expect an increase in demand for apples since consumers would move consumption away from the higher priced oranges towards apples which might be considered a substitute good. Complements, on the other hand, are goods that are consumed together, such as caramels and apples. If the price for a good increases, its quantity demanded will decrease and the demand for the complements of that good will also decline. For example, if the price of hot dogs increases, one will buy fewer hot dogs and therefore demand fewer hot dog buns, which are complements to hot dogs.
Remember that demand is made up of those who are willing and able to purchase the good at a particular price. Income influences both willingness and ability to pay. As one’s income increases, a person's ability to purchase a good increases, but she/he may not necessarily want more. If the demand for the good increases as income rises, the good is considered to be a normal good. Most goods fall into this category; we want more cars, more TVs, more boats as our income increases. As our income falls, we also demand fewer of these goods. Inferior goods have an inverse relationship with income. As income rises we demand fewer of these goods, but as income falls we demand more of these goods. Although individual preferences influence if a good is normal or inferior, in general, Top Ramen, Mac and Cheese, and used clothing fall into the category of an inferior good.
Another factor of demand is future expectations. This includes expectations of future prices and income. An individual that is graduating at the end of the semester, who has just accepted a well paying job, may spend more today given the expectation of a higher future income. This is especially true if the job offer is for more income than what he had originally anticipated. If one expects the price of apples to go up next week, she will likely buy more apples today while the price is still low.
The last factor of demand is the number of buyers. A competitive market is made up of many buyers and many sellers. Thus a producer is not particularly concerned with the demand of one individual but rather the demand of all the buyers collectively in that market. As the number of buyers increases or decreases, the demand for the good will change.
The market demand is determined by the horizontal summation of the individual demands. For example, at 20 cents per apple, Kelsey would buy 18 apples, Scott would buy 6 and Maddie would buy 18, making the market quantity demanded at 20 cents equal to 42 apples.
When determining the market demand graphically, we select a price then find the quantity demanded by each individual at that price. To determine the entire demand curve, we would then select another price and repeat the process.
Demand vs. Quantity Demanded
At this point, it is important to re-emphasize that there is an important distinction between changes in demand and changes in quantity demanded. The entire curve showing the various combinations of price and quantity demanded represents the demand curve. Thus a change in the price of the good does not shift the curve (or change demand) but causes a movement along the demand curve to a different quantity demanded. If the price returned to its original price, we would return to the original quantity demanded.
If the price were originally $60, the quantity demanded would be 40 units. An increase in the price of the good to $80 decreases the quantity demanded to 20 units. This is a movement along the demand curve to a new quantity demanded. Note that if the price were to return to $60, the quantity demanded would also return to the 40 units.
A shift or change in demand comes about when there is a different quantity demanded at each price. At $60 we originally demanded 40 units. If there is a lower quantity demanded at each price, the demand curve has shifted left. Now at $60, there are only 20 units demanded. Shifts in demand are caused by factors other than the price of the good and, as discussed, include changes in: 1) tastes and preferences; 2) price of related goods; 3) income; 4) expectations about the future; and 5) market size.
The demand for an input or resource is derived from the demand for the good or service that uses the resource. We do not value steel in and of itself, but since we demand cars, we indirectly demand steel. If the demand for cars increases, this would cause an increase in the demand for the steel that is used to make the cars.
Practice
Identify how each of the following would change the demand (shift right, shift left, move along).
| Market | Item |
| 1. Oranges | A new diet consisting of eating six oranges a day becomes the latest diet fad. |
| 2. Cars | Consumers’ income rises. |
| 3. Cars | The price of gasoline doubles. |
| 4. Gym memberships | The price of personal exercise equipment increases. |
| 5. Shoes | The number of shoe manufacturers increases. |
| 6. Arthritis medication | The number of elderly citizensincreases. |
Answers: 1. D-right 2. D-right 3. D-left 4. D-right 5. Along 6. D-right
Section 02: Supply
Supply
Supply shows the amount that producers are willing and able to supply to the market at each given price. Producers must receive a price that covers the marginal cost of production. As the price of the good rises, producers are willing to produce more of the good even though there is an increasing marginal cost.
If you were offered a job doing data entry this semester and could work as many hours as you wanted, how many hours per week would you work at minimum wage? The answer to this would be based on your opportunity cost. What would you have to give up – social time, study time, or another job?
An individual may be willing to work a few hours at a low wage since the value of what they are sacrificing is relatively low. As the wage rate rises, individuals are typically willing to work more hours since the marginal benefit becomes greater than or equal to the marginal cost of what has to be sacrificed. At some point, many students would choose to drop out of school for the semester since the marginal benefit is greater than the marginal cost. Many stars and celebrities never attend college or drop out since the income that they would be foregoing at that time in their lives, exceeds the increase in their earnings potential of attending school.
The climate and soils of Idaho allow it to grow some of the best potatoes in the world. At a given price, farmers are willing to supply a certain number of potatoes to the market. Since farmers have already used their land best suited for potato production they have to use land that is less suitable to potato production if they want to grow more potatoes. Since this land is less suited for potato production, yields are lower and the cost per hundredweight of potatoes is greater. As the price of potatoes increases, farmers are able to justify growing more potatoes even though the marginal cost is greater.
Similar to the demand curve, a movement along the supply curve from point A to point B is called a change in the quantity supplied. Changes along the supply curve are caused by a change in the price of the good. As the price of the apples increases, producers are willing to supply more apples.
A shift in the supply curve (for example from A to C) is caused by a factor other than the price of the good and results in a different quantity supplied at each price.
Factors that Shift the Supply Curve
The factors listed below will shift the supply curve either out or in.
1. Resource price
If the price of crude oil (a resource or input into gasoline production) increases, the quantity supplied of gasoline at each price would decline, shifting the supply curve to the left.
2. Technique of production
If a new method or technique of production is developed, the cost of producing each good declines and producers are willing to supply more at each price - shifting the supply curve to the right.
3. Prices of other goods
If the price of wheat increases relative to the price of other crops that could be grown on the same land, such as potatoes or corn, then producers will want to grow more wheat, ceteris paribus. By increasing the resources devoted to growing wheat, the supply of other crops will decline. Goods that are produced using similar resources are substitutes in production.
Complements in production are goods that are jointly produced. Beef cows provide not only steaks and hamburger but also leather that is used to make belts and shoes. An increase in the price of steaks will cause an increase in the quantity supplied of steaks and will also cause an increase (or shift right) in the supply of leather which is a complement in production.
4. Taxes & Subsidies
Taxes and subsidies impact the profitability of producing a good. If businesses have to pay more taxes, the supply curve would shift to the left. On the other hand, if businesses received a subsidy for producing a good, they would be willing to supply more of the good, thus shifting the supply curve to the right.
5. Price Expectations
Expectations about the future price will shift the supply. If sellers anticipate that home values will decrease in the future, they may choose to put their house on the market today before the price falls. Unfortunately, these expectations often become self-fulfilling prophecies, since if many people think values are going down and put their house on the market today, the increase in supply leads to a lower price.
6. Number of sellers
If more companies start to make motorcycles, the supply of motorcycles would increase. If a motorcycle company goes out of business, the supply of motorcycles would decline, shifting the supply curve to the left.
7. Supply Shocks
The last factor is often out of the hands of the producer. Natural disasters such as earthquakes, hurricanes, and floods impact both the production and distribution of goods. While supply shocks are typically negative, there can be beneficial supply shocks with rains coming at the ideal times in a growing season.
Shifts in the Supply
To recap, changes in the price of a good will result in movements along the supply curve called changes in quantity supplied. A change in any of the other factors we've discussed (and listed above), will shift the supply curve either right or left. The resulting movements are called changes in supply.
A Publisher Faces The Following Demand Schedule For The Next Novel
Practice
Identify how each factor will shift the supply curve: right, left, or move along.
| Market | Change |
| 1. Computers | Price of memory chips decreases. |
| 2. Airline Tickets | Government imposes a new jet fuel tax. |
| 3. Milk | Demand for milk increases. |
| 4. Homes | Potential sellers expect home prices to decline in six months. |
| 5. Cars | A new engine design reduces the cost of producing cars. |
| 6. Corn | The price of wheat (a substitute in production increases in price). |
| 7. Oranges | A freeze in Florida kills 25% of the orange crop. |
1. S-Right 2. S-Left 3. Along-Greater Q 4. S-Right 5. S-Right 6. S-Left 7. S-Left
Section 03: Equilibrium
Market Equilibrium
A market brings together those who are willing and able to supply the good and those who are willing and able to purchase the good. In a competitive market, where there are many buyers and sellers, the price of the good serves as a rationing mechanism. Since the demand curve shows the quantity demanded at each price and the supply curve shows the quantity supplied, the point at which the supply curve and demand curve intersect is the point at where the quantity supplied equals the quantity demanded. This is call the market equilibrium.
Consumer Surplus and Producer Surplus
At the last unit purchased, the price the consumer pays (their marginal cost) is equal to what they were willing to pay (the marginal benefit). The previous units purchased actually cost less than what consumers were willing to pay. This difference between the demand curve, i.e., what consumers were willing to pay and the price, i.e., what consumers had to pay, is known as the consumer surplus.
The marginal cost of producing a good is represented by the supply curve. The price received by the sale of the good would be the marginal benefit to the producer, so the difference between the price and the supply curve is the producer surplus, the additional return to producers above what they would require to produce that quantity of goods.
Disequilibrium
If the market price is above the equilibrium, the quantity supplied will be greater than the quantity demanded. The resulting surplus in the market will lead producers to cut back on production and lower the price. As the price falls, the quantity demanded increases since consumers are willing to buy more of the product at the lower price. In a competitive market, this process continues till the market reaches equilibrium. While a market may not be in equilibrium, the forces in the market move the market towards equilibrium.
If the market price is too low, consumers are not able to purchase the amount of the product they desire at that price. As a result of this shortage, consumers will offer a higher price for the product. As the price increases, producers are willing to supply more of the good, but the quantity demanded by consumers will decrease. Forces in the market will continue to drive the price up until the quantity supplied equals the quantity demanded.
Shifts in Supply and Demand
The factors of supply and demand determine the equilibrium price and quantity. As these factors shift, the equilibrium price and quantity will also change.
If the demand decreases, for example a particular style of sunglasses becomes less popular, i.e., a change a tastes and preferences, the quantity demanded at each price has decreased. At the current price there is now a surplus in the market and pressure for the price to decrease. The new equilibrium will be at a lower price and lower quantity. Note that the supply curve does not shift but a lower quantity is supplied due to a decrease in the price.
If the demand curve shifts right, there is a greater quantity demanded at each price, the newly created shortage at the original price will drive the market to a higher equilibrium price and quantity. As the demand curve shifts the change in the equilibrium price and quantity will be in the same direction, i.e., both will increase.
A Publisher Faces The Following Demand Schedule Slader
If the supply curve shifts left, say due to an increase in the price of the resources used to make the product, there is a lower quantity supplied at each price. The result will be an increase in the market equilibrium price but a decrease in the market equilibrium quantity. The increase in price, causes a movement along the demand curve to a lower equilibrium quantity demanded.
A rightward shift in the supply curve, say from a new production technology, leads to a lower equilibrium price and a greater quantity. Note that as the supply curve shifts, the change in the equilibrium price and quantity will be in opposite directions.
Complex Cases
When demand and supply are changing at the same time, the analysis becomes more complex. In such cases, we are still able to say whether one of the two variables (equilibrium price or quantity) will increase or decrease, but we may not be able to say how both will change. When the shifts in demand and supply are driving price or quantity in opposite directions, we are unable to say how one of the two will change without further information.
We are able to find the market equilibrium by analyzing a schedule or table, by graphing the data or algebraically.
Even without graphing the curves, we are able to analyze the table and see that at a price of $30 the quantity demanded equals the quantity supplied. This is clearly the equilibrium point.
If we graph the curves, we find that at price of 30 dollars, the quantity supplied would be 10 and the quantity demanded would be 10, that is, where the supply and demand curves intersect.
The data can also be represented by equations.
P = 50 – 2Qd and P = 10 + 2 Qs
Solving the equations algebraically will also enable us to find the point where the quantity supplied equals the quantity demanded and the price where that will be true. We do this by setting the two equations equal to each other and solving. The steps for doing this are illustrated below.
Our first step is to get the Qs together, by adding 2Q to both sides. On the left hand side, the negative 2Q plus 2Q cancel each other out, and on the right side 2 Q plus 2Q gives us 4Q. Our next step is to get the Q by itself. We can subtract 10 from both sides and are left with 40 = 4Q. The last step is to divide both sides by 4, which leaves us with an equilibrium Quantity of 10.
Given an equilibrium quantity of 10, we can plug this value into either the equation we have for supply or demand and find the equilibrium price of $30. Either graphically or algebraically, we end up with the same answer.
Section 04: Market Intervention
Market Intervention
If a competitive market is free of intervention, market forces will always drive the price and quantity towards the equilibrium. However, there are times when government feels a need to intervene in the market and prevent it from reaching equilibrium. While often done with good intentions, this intervention often brings about undesirable secondary effects. Market intervention often comes as either a price floor or a price ceiling.
Price Floor
A price floor sets a minimum price for which the good may be sold. Price floors are designed to benefit the producers providing them a price greater than the original market equilibrium. To be effective, a price floor would need to be above the market equilibrium. At a price above the market equilibrium the quantity supplied will exceed the quantity demanded resulting in a surplus in the market.
For example, the government imposed price floors for certain agricultural commodities, such as wheat and corn. At a price floor, greater than the market equilibrium price, producers increase the quantity supplied of the good. However, consumers now face a higher price and reduce the quantity demanded. The result of the price floor is a surplus in the market.
Since producers are unable to sell all of their product at the imposed price floor, they have an incentive to lower the price but cannot. To maintain the price floor, governments are often forced to step in and purchase the excess product, which adds an additional costs to the consumers who are also taxpayers. Thus the consumers suffer from both higher prices but also higher taxes to dispose of the product.
The decision to intervene in the market is a normative decision of policy makers, is the benefit to those receiving a higher wage greater than the added cost to society? Is the benefit of having excess food production greater than the additional costs that are incurred due to the market intervention?
Another example of a price floor is a minimum wage. In the labor market, the workers supply the labor and the businesses demand the labor. If a minimum wage is implemented that is above the market equilibrium, some of the individuals who were not willing to work at the original market equilibrium wage are now willing to work at the higher wage, i.e., there is an increase in the quantity of labor supplied. Businesses must now pay their workers more and consequently reduce the quantity of labor demanded. The result is a surplus of labor available at the minimum wage. Due to the government imposed price floor, price is no longer able to serve as the rationing device and individuals who are willing and able to work at or below the going minimum wage may not be able to find employment.
Price Ceilings
Price ceilings are intended to benefit the consumer and set a maximum price for which the product may be sold. To be effective, the ceiling price must be below the market equilibrium. Some large metropolitan areas control the price that can be charged for apartment rent. The result is that more individuals want to rent apartments given the lower price, but apartment owners are not willing to supply as many apartments to the market (i.e., a lower quantity supplied). In many cases when price ceilings are implemented, black markets or illegal markets develop that facilitate trade at a price above the set government maximum price.
In a competitive market, the economic surplus which is the combined area of the consumer and producer surplus is maximized.
Deadweight Loss
When a price floor is imposed, there is a loss in the economic surplus (Area A and B) known as deadweight loss. Since consumer surplus is the area below the demand curve and above the price, with the price floor the area of consumer surplus is reduced from areas B, C, and E to only area E. Producer surplus which is below the price and above the supply or marginal cost curve changes from area A and D to D and C.
A price ceiling also creates a deadweight loss of area A and B. The consumer surplus area changes from areas E and B to E and C and the producer surplus area is reduced from A, C, and D to only D.
Excise Tax
Another government market intervention is the imposition of a tax or subsidy. An excise tax is a tax levied on the production or consumption of a product. To consumers, the tax increases the price of the good purchased moving them along the demand curve to a lower quantity demanded. The vertical distance between the original and new supply curve is the amount of the tax. Due to the tax, the new equilibrium price (P1) is higher and the equilibrium quantity (Q1) is lower. While the consumer is now paying price (P1) the producer only receives price (P2) after paying the tax.
Due to the tax, the area of consumer surplus is reduced to area A and producer surplus is reduced to area B. The tax revenue is equal to the tax per unit multiplied by the units sold. The areas of consumer and producer surplus that were to the right of Q1 are lost and make up the deadweight loss.