Market Equilibrium Process sample essay
– Relate the concepts of the market equilibrating process in the Weeks One and Two readings and learning activities to a prior real-world experience occurring in a free market. The experience does not necessarily have to be work related.
– Explain the market equilibrating process in relation to your experience. Include academic research to support your ideas.
– Consider the following components in your explanation:
• Law of demand and the determinants of demand
• Law of supply and the determinants of supply
• Efficient markets theory
• Surplus and shortage
– Use University of Phoenix Material: Appendix A to create graphs illustrating the equilibrating process in price relation to the shift in supply and demand.
– Deliver the content as a 350- to 500-word paper, 7- to 10-slide
Microsoft® PowerPoint® presentation, 2- to 3-minute video, or 1-page comic strip illustration.
Market equilibrium refers to the selling price “where the intentions of buyers and sellers match”. This means that the quantity sellers are willing to sell at a particular price matches the quantity buyers are willing to purchase at that same price, or, in other words, where the quantity demanded equals the quantity supplied. A surplus results when the price is too high (quantity supplied is more than consumers are willing to buy) and a shortage occurs when the price is too low (quantity demanded is more than quantity supplied). The equilibrium price changes when there is a shift in either supply or demand. The market is made up of two basic groups, households and businesses. These two units buy and sell goods and services from and to each other. The market system uses competition among buyers and sellers to regulate the price of available goods and services. Theoretically, this insures that no one buyer or seller will be able to monopolize the market because others can come in and undercut the price. Supply and demand are affected by changes in consumer preferences, number of buyers in the market, consumers’ incomes, the prices of related goods, and consumer expectations.
The economy is currently in a recession, or depression depending on whom you ask, that has greatly affected these determinants of demand. Many industries and individual consumers have seen a steep decline in income due to this market low period. The recession has had a significant affect on the construction industry in which this author currently works. There is currently a surplus of commercial and residential properties on the market. This surplus discourages businesses from starting new construction projects. This has led to businesses reducing their workforces which has in turn led to consumers reducing their spending and has become a circle of lower buying and selling. The construction industry was not the only one affected by this cycle.
Nearly all industries that depend on consumers discretionary funds, those not spent on necessities, were affected. Large manufacturers that have been around forever went bankrupt and small companies everywhere suffered the same fate. The United States economy is market based. Sellers and consumers are free to trade in any way that works for them with relatively little interference from government. This system allows the price of products and services to be set by supply and demand and determines the allocation of limited resources. Suppliers and consumers are connected in a circle of buying and selling, and when there is a major shift in the economy all can be affected.
This is a hanging indent. To keep the hanging indent format, simply delete this line of text using the backspace key, and replace the information with your reference entry. http://www.e-m-h.org/introduction.html
http://www.healthmr.com/resources/newsletter-archive/1011-fa-3-ways-to-increase-revenues-in-home-health-and-hospice http://academicwritingtips.org/component/k2/item/932-market-equilibrium-process.html http://ajrccm.atsjournals.org/cgi/content/full/165/6/750
Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more