Market Equilibration Process Paper

Market Equilibration Process Paper

Market Equilibration Process Paper
David Campbell
ECO/ 561
May 6, 2013
Professor Maria H. Ramjerdi

Market Equilibration Process Paper
      There are many things that come with learning the concepts of supply and demand. It for one helps many people who are corporation owners have to the capability to make best of their income. The Market Equilibrating Process to us all 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. Also known is that equilibrium quantity relates to corresponding quantity. A change in either demand or supply changes the equilibrium price and quantity (McConnell, Brue, & Flynn, 2009). Throughout this paper I will not only speak on market equilibrating process but also give my experience.
      The market equilibrating process is experienced many times through people’s lives but for me I see most examples through my finances. If looking at a supply curve, you would see my earnings and revenue. My amount outstanding and disbursements would be look at as my demand curve. The moment when my income reaches the same amount as my debts then that is known to be my equilibrium point. The equilibrium point is where I see the amount I am able to pay for with my balance due and income. Throughout understanding this concept I have noticed that there are many different things that can affect the curve for supply and demand. One thing that damages me that also hurts many others is the overuse of credit cards.
      We all know when someone has a credit card; it makes a purchase of an item that much easier to obtain which is at that moment too much to pay in full and would leave them make payments within their equilibrium point. If my source of income has stop and I have no supply, then the demand I have incurred would not be in range for me to afford. The choice for me to gain a credit card is risky, especially if I were to lose...

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