Market Equilibrium

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Running Head: MARKET EQUILIBRATING PROCESS

Chris Dionne

Week 1 Individual Assignment

Instructor: P. Loreto

ECO/561 ECONOMICS

Due: September 1, 2010

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Introduction

Any major business that you research that strives to make a profit or living off of the public all have a couple of things in common. The first commonality that these company’s share is that they have to be fluent in economics and how a single decision can and often times does affect the outcome of that month or years revenue, the second commonality is major businesses have to know how to grab a customer and make them a member of a specific organization. There are a couple of details that will be discussed during this assignment that will allow the reader to better know and understand the market equilibrating process.

Give and Take

Most of us in this country like a certain hobby, I love the game of baseball and do pretty much anything to get to my favorite teams games. Any major league team will tell you that the reason they give out so many free items is to bring the people into the stadium to allow the franchise to make a better profit during a time of the season they deem to be at risk of overhead. Thus you have things like bobble head night, free hat night, dollar beer night etc. The stadium does this to allow the customer a chance to spend much more money and still feel as if they are being recognized for being a fan, thus the give and take theory is explained. By allowing the customers to benefit with season tickets and still spend money at the stadium is a win, win situation for all parties.

Equilibration is used primarily when all business models show a slow month of extended period of time. This model is used mostly in the hands of a Chief Executive Officer, Manager, or Business Owner, because they have access to all statistics and models for the previous year.

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Summary

This incentive will increase business and make business consistently throughout the year. The...