Market Equilibrium Process Analysis

The main goal of the market equilibrium is to get match the common intention of buyer and seller in the market. According to McConnell, the market equilibrium is the base point in which the supply and demand of the product quantity (McConnell, 2009). The equilibrium process play role for the buyer and seller agreement and confidence in each other. The process of equilibrium has impact of the following facts •Equilibrium price and quantity of products. •Changes and shift in demands of the products. •Changes and shift in supply of the products.
The equilibrium price and quantity also can be referred by the total intersection of supply and demand curve. The shift in this curve will affect the shift in the equilibrium price and quantity. The change in the demand of product also effect the price and quantity structure at equilibrium because if the demand is higher then the price will be higher and the production in quantity will be higher as well. The supply will have impact on the equilibrium level as well because if the product supply in large amount then the price will stay at the low but if the supply level decreases then the price might go up due to the demand of the product.
Above all facts about the market equilibrium process can be shown in the experience at the music store while buying music CD. One of the favorite band CD price was $15 until previous week, but at present the price have gone up to $22. The sudden price change was the effect of the demand of the band CD. The change in demand of the CD was higher this week and the supply was only 50 in quantity, which producer thought to be enough for the market demand. But the same CD was requested by more than 50 people, and increase in the demand prompt to increase in the price.

Thus the effect of the demand change affected the equilibrium structure of price and quantity. The same effect can be seen in the supply. The supply of the same band CD was 70 and only 50 people have requested about the band CD on the price of $15. It shows that the 50 people are fine with the product and they are not planning to buy more same band CDs. Therefore, the price of the CD dropped to $10 in order to produce cell of remainder 20 CD in supply. The shift in the supply caused the equilibrium to reach lower for both price and quantities. Thus the supply and demand have major impact on the equilibrium price and quantity.
These three factors would explain that the market equilibrium process can be achieved in the theory but in the real-world market with constantly changing price and economy would make it harder to achieve market equilibrium. Thus, the factors of supply and demand have affected the market equilibrium process including the equilibrium price and quantity. The change in supply and demand impacts largely on the market equilibrium and bring level of equilibrium higher or lower. Reference: McConnell, C. R. , Brue, S. L. , & Flynn, S. M. (2009). Economics: Principles, problems, and policies (18th ed. ). New York: McGraw Hill/Irwin.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

At Solution Essays, we are determined to deliver high-quality papers to our clients at a fair price. To ensure this happens effectively, we have developed 5 beneficial guarantees. This guarantees will ensure you enjoy using our website which is secure and easy to use.

Money-back guarantee

Most companies do not offer a money-back guarantee but with Solution Essays, it’s either a quality paper or your money back. Our customers are assured of high-quality papers and thus there are very rare cases of refund requests due to quality concern.

Read more

Zero-plagiarism guarantee

All our papers are written from scratch and according to your specific paper instructions. This minimizes any chance of plagiarism. The papers are also passed through a plagiarism-detecting software thus ruling out any chance of plagiarism.

Read more

Free-revision policy

We offer free revisions in all orders delivered as long as there is no alteration in the initial order instruction. We will revise your paper until you are fully satisfied with the order delivered to you.

Read more

Privacy policy

All data on our website is stored as per international data protection rules. This ensures that any personal data you share with us is stored safely. We never share your personal data with third parties without your consent.

Read more

Fair-cooperation guarantee

Ordering and sending money to us is an indication that you are purchasing our products and services. To have business talks laid out in the official language, you can check on our terms and conditions and get more information about this.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Order your essay today and save 30% with the discount code: LEMONADEPlace Order