Market Equilibrating Process

Running head: Market Equilibrating Process Paper

Market Equilibrating Process

Kychelle Collins

University Of Phoenix

Paul Updike

Abstract

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, such as supply, taxes, subsidies, and production techniques. Let’s think making a trip to the local grocery store, looking through the sales papers of the store competitors would assist in bargain shopping. The consistencies in the different prices of the products in the papers can steer a consumer to change their mind on where to purchase a certain products, (McConnell, 2009).

In the readings this week, I learned that the purpose of the market equilibrating process is to reconcile the processes of supply economics with the demand of economical force. In my life, I have learned by experience, the concept that if you spend more than what you have or take out loans without proper ways of repayment, you will create an imbalance in your life. I have also learned from this week’s reading, that many people exceed their means in order to purchase products that they do not need and stop paying their bills in order to be able to pay for these products. This is something that has given me a hard time in my experiences in the past. One example I am guilty of is eating out every time a get a little money, knowing money is tight and I need to use this money on paying bills. Through applying this week’s reading, I have a better understanding of why it is important to plan the expenditure of money. The balance of funds can be severely thrown out of synch when the amount of purchases made overly exceeds the balance of a personal account.

In conclusion, understanding supply, demand and market equilibrium will help in determining whether items are in or out...