This website uses cookies to ensure you have the best experience. Learn more

Market Equilibration Process Essay

586 words - 3 pages

Market Equilibration Process
Lindsey Brito
Prof. Boloorian
ECON/561
LDR531


Market Equilibration Process
The United States of America is essentially a free market economy, because it is facilitated by supply and demand within our society. Although, America is essentially a free market there is still some government regulations put in place to guarantee fair practices. A true free market would mean that buyers and sellers would conduct their business without any government regulations.
A free market that we all see and experience is the automaker market. Numerous automakers are in constant competition to ensure that their product is outperforming the other products on the market. The automakers industry is facilitated by supply and demand. For example when we saw automobiles featuring things such as, the rearview camera, blind spot check, and so on, initially in the luxury cars. Now all automakers have ...view middle of the document...


The law of demand states that if all other factors are equal, the price value of a good or service increases. Consumer demand for a commodity will decrease and the same will be true of the opposite. The law of demand states that as the price for a commodity rises the lower the quantity of demand because of the opportunity consumers have to acquire that commodity increases. More tradeoffs will be made in order to obtain the more expensive commodity. The determinants of demand looks at all factors that determine the quantity of demand pertaining to a particular commodity, so we look at Americans and their love of their vehicles.
The Efficient Market Theory would suggest that automakers would have been able to foresee the demand in fuel efficient vehicles before the demand hit them. The Efficient Market Theory is somewhat of a discredited theory, because there is no way to beat the market. With the shift in consumer behaviors and demands this created a need for a shift between two equilibrium states. Consumers are demanding more fuel efficient vehicles, therefore causing automakers to meet the demands of the consumer.
World events, such as oil and fuel prices rising and the increasing demand for fuel efficient automobiles, ultimately changes consumer behavior and demands. With the changes in consumer behavior and the increased demands this ultimately altered the supply and instigated a movement between two equilibrium states.

References
Bell, H. A. (2012). Velocity of information in the efficient markets: A theory of market value change. Journal of investing, 21(3), 55-59.
Dey, D., Lahari, A., &Guoying, Z. (2014). Quality of completion and market segmentation in the security software market. MIS quarterly, 38(2), 589-A7.
Train, K. E., & Winston, C. (2007). Vehicle choice behavior and the declining market share of the u.s. automakers. International economic review, 48(4), 1469-1496. doi:10.1111/1468-2354.2007.00471.x

Other Papers Like Market Equilibration Process

Market Equilibration Essay

447 words - 2 pages Markets are constantly adjusting to the market equilibration. Being able to interpret the different factors in a market of when consumers purchase (demand), market inventory (supply), surplus and shortage are important to understand for a business to maximize their earnings. Market equilibration process is, “the interaction of market demand and market supply adjusts the price to the point at which the quantities demanded and supplied are equal

Market Equilibrium Process Essay

656 words - 3 pages Market Equilibration Process Jeremiah D. Wood ECO/561 April 19, 2014 Professor John Lindvall Market Equilibration Process Economic equilibrium is defined as a condition or state in which the economic forces are at a balance. In this particular discussion, one will discuss equilibration, the process of moving between two different points that is affected by a change in demand or supply. One will cover how a specific world event

Market Equilibrium Process

873 words - 4 pages Market Equilibration Process Maceo R. Lynch ECO/561 May 27, 2014 Jeremy Alessandro Market Equilibration Process The market equilibration process involves movement between two equilibrium points as a result of some change in supply or demand in a given market. Managers must understand this process, economic principles, and supply and demand to identify and follow changes when making important business decisions. The coffee industry is

Eco/561 Week 2

591 words - 3 pages Market Equilibration Process Paper ECO/561 June 7, 2012 Dr. Jill Trask Market Equilibration Process Paper Market equilibration can be accomplished when market price established through competition so the amount of good bought is equal to the number of goods sold. Supply and demand would be factors to change the market equilibrium. In the oil industry market equilibrium is determined by the cost of oil, competitor’s prices, and

Equilibrium Process

1139 words - 5 pages Market Equilibration Process Gregory Ivie University of Phoenix Economics ECO/561 John Lindvall May 31, 2013 Market Equilibration Process Paper This paper contains a brief explanation of the effects on the market equilibration process in the commercial trucking industry after the Motor Carrier Act of 1980 was signed by former

Marker Equilibration

832 words - 4 pages Market Equilibration Process Paper Marlene Toadlena ECO 561 March 02, 2015 Genevieve Turano Market Equilibration Process Paper During Hurricane Sandy, the city of New York experienced price gouging by merchants due to the increase in demand for many products. The supply is limited; therefore, many merchants decided they would be able to capitalize on the needs of the consumers. However, during the storm, public transportation was limited

Market Equilibration

1063 words - 5 pages Market Equilibration Process Paper ECO/561 April 20, 2015 Market Equilibration Process Paper Economics studies supply and demand and what effects they have on everyday business. Supply and demand work together to paint a picture of market conditions for the business. Their cause and effects are called determinants. As determinants affect one it will also affect the other. To balance the cause and effects is to reach equilibrium

Market Equilibrium Process

896 words - 4 pages country went down in pricing to $1.89-$2.24 causing the demand to go up significantly. This situation would have been described as market equilibrium process according to economist or hitting a jackpot to the average working Joe. Hopefully, after reading this paper, there will be a better understanding on how the market equilibration process is applied to one’s everyday life. Market Process Equilibrium It has been both tested and verified in many

Marshalian Supplay

2866 words - 12 pages the economic field. Always and everywhere with all economists, price is the point of equilibrium or adjustment OJi equilibration between demand and supply. It is, then, safe as far as it goes-but always in the sense of the commonplace or the obvious-to announce that price is determined by demand and supply. It is merely an oracular way of asserting an undisputed thing. Knowing not even so much as the question One may always refer the solution to

Eco 561 Final Exam Latest University of Phoenix

1856 words - 8 pages ECO 561 Week 1 DQ 2 ECO 561 Week 1 DQ 3 ECO 561 Week 1 DQ 4 ECO 561 Week 1 Quiz or Knowledge Check (Latest) ECO 561 Week 1 Complete ECO 561 Week 2 DQ 1 ECO 561 Week 2 DQ 2 ECO 561 Week 2 DQ 3 ECO 561 Week 2 Market Equilibration Process Paper ECO 561 Week 2 Quiz or Knowledge Check (Latest) ECO 561 Week 2 Complete ECO 561 Week 3 DQ 1 ECO 561 Week 3 DQ 2 ECO 561 Week 3 Quiz or Knowledge Check (Latest) ECO 561 Week 3 Complete ECO 561

Eco 561 Final Exam

1884 words - 8 pages ECO 561 Week 2 DQ 2 ECO 561 Week 2 DQ 3 ECO 561 Week 2 Individual Assignment Week Two Knowledge Check ECO 561 Week 2 Individual Assignment Market Equilibration Process Paper ECO 561 Week 2 Learning team Assignment Learning Team Deliverable ECO 561 Week 2 Complete ECO 561 Week 3 DQ 1 ECO 561 Week 3 DQ 2 ECO 561 Week 3 Individual Assignment Week Three Knowledge Check ECO 561 Week 3 Learning team Learning Team Deliverable ECO 561 Week 3

Related Essays

Market Equilibration Process Essay

853 words - 4 pages Market Equilibration Process Paper Bryan Pelton ECO/561 February 8, 2012 Michael Coffey Market Equilibration Process Paper In today’s market, consumers are generally weary about what purchases they make due to the fact that there are many competitors competing for the same potential customers. The market equilibration process is such that when goods are in short supply, buyers bid against one another in relation to its price which

Market Equilibration Process Eco/561 Essay

535 words - 3 pages Market Equilibration Process Hair care is very lucrative business. Millions of men and women use hair salons as their choice of preference. I personally choose to visit the salon on a weekly basis. Although I choose a weekly visit to the hair salon, most individuals don’t. Hair stylists have chosen a very volatile market because of seasonal changes, state of the economy and competitor pricing. Because there are many individuals like me who

Market Equilibration Process Paper

716 words - 3 pages Forms of Business Tiffany S. Eubanks LAW 531 November 27, 2011 Jonathon Jamison Forms of Business There are seven types of businesses considered for week two and each display a different way of running a corporation. The seven types are: sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form. Each have their own perks and could be a preferred way of

Market Equilibration Process Paper

560 words - 3 pages remain the stable in this situation. Equilibrating Process is “the interaction of market demand and market supply adjusts the price to the point at which the quantities demanded and supplied are equal”, known as equilibrium price. The corresponding quantity is the equilibrium quantity. A change in either demand or supply changes the equilibrium price and quantity (McConnell, Brue, & Flynn, 2009). Through this experience, my partner and I learned