Final answer:
Michael Porter noted that competition and government regulations are pressures that affect potential sales in a market. These pressures impact pricing, product development, and compliance costs, while supply and demand dynamics determine market prices and quantities. Discontent with these market forces can lead to public outcry and political intervention, particularly regarding the prices of necessities.
Step-by-step explanation:
Michael Porter identified several pressures that can affect potential sales in a market. Among the key pressures are competition and government regulations. These factors play a crucial role in shaping the environment in which businesses operate. Competition affects pricing, product development, and market share, while government regulations can restrict or facilitate market entry and affect costs through taxes, subsidies, or compliance requirements.
Additionally, another key pressure relevant to the discussion is the dynamics of supply and demand. Supply, referring to the amount of a product that will be offered for sale at various prices, and demand, representing consumer desire for the product, are fundamental economic forces that determine market prices and quantities. Changes in these can result from shifts in consumer income, buyer numbers, price expectations, or availability of related products. Controversy can arise when supply and demand cause prices to fluctuate, particularly for necessities. This can lead to public pressure and cause politicians to intervene with legislation aimed at stabilizing prices.