Market Equilibrating

Deborah McCombs-Griggs

Market Equilibrating Process

ECO-561

To understand how market-equilibrating process affect our day to day economic, we must first defined the process. The market equilibrating process is defined “as the point at which the quantities demanded and supplied are equal,” (McConnell, 2009). The concept of market equilibrating is derived from combining the equilibrium price and quantity to yield the equilibrium of a specific market. Supply, taxes, subsidies, production techniques. Before making a trip to the local grocery store, looking through the sales papers of the store competitors can assist in bargain shopping. Inconsistencies in the different prices of the papers can lead a consumer to change their mind on where to purchase their products, (McConnell, 2009).

I have worked several different areas of the retail industry and every retailer must deal with the price elasticity of demand in one way or another in order to stay in business. Some retailers have applied purchasing and distribution skills to lower prices for several generic products because of the great demand. The decision to lower generic product prices has made the competition tougher in its market. Retailers also gauge the elasticity of demand by changing the price to satisfy customers. Everyone deal with applying supply and demand concepts either at work or personal environment. In this paper, I will relate the concepts of this week’s reading to one of my real world experience.

My experience deals with managing an apartment complex for several years. The supply and demands of the two bedrooms were confronted with different situations that affected it fro a supply and demand curve. The economic decision that I had to make was based on the best interest of the community and the goals that ACMS Corporation had to accomplish for economic growth. The supply, demand and equilibrium impacted the status of the two-bedroom apartment in the city of...