Market Equilibrating Process Paper
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Market Equilibrating Process Paper
Faith Johnson
University of Phoenix
ECO 561
June 21, 2010
Market Equilibrating Process Paper
“The market equilibrating process is where quantity demanded equals quantity supplied; the market is considered balanced.” (McConnell, Brue, & Flynn, 2009) In other words, buyers and sellers agree on both price and quantity. “Competition between buyers and sellers drives the market to the state of equilibrium.” (McConnell, Brue, & Flynn, 2009) In my case, I have two market equilibrium processes.
First Equilibrium Process
A few years ago, I signed up for a timeshare where I could get a vacation for less money. I could enjoy the benefits and having a home away from home from having a WorldMark Timeshare. I could go anywhere like Las Vegas, Hawaii, and other places and stay a week for under $100, instead of spending over $500 a week. As a member, I receive an annual allotment of vacation points to use toward each vacation I take a year. I would then receive the same number of points every year, and some points do roll over to the next year. Each accommodation has a vacation value that is determined by the type of the room and timing of the vacation stay. I would use more vacation points for places like Hawaii because it is very popular. Most of time, my Timeshare does offer gift cards to places like movies, Wal-Mart, JcPenney and even tickets to attractions such as Disneyland or Paramount Great America theme parks.
Second Equilibrium Process
In my personal life I experienced market equilibrating when I got a new job, and let the other job go. When I got the new job, I suddenly experience a personal demand for more goods. A person might go out and buy a new car, new clothing, or go on vacation. If you let go of a job, though, a person will hopefully demand fewer goods, because of having less money. A person will cut back on extras until their personal finances are in equilibrium, meaning a person will not be...
Faith Johnson
University of Phoenix
ECO 561
June 21, 2010
Market Equilibrating Process Paper
“The market equilibrating process is where quantity demanded equals quantity supplied; the market is considered balanced.” (McConnell, Brue, & Flynn, 2009) In other words, buyers and sellers agree on both price and quantity. “Competition between buyers and sellers drives the market to the state of equilibrium.” (McConnell, Brue, & Flynn, 2009) In my case, I have two market equilibrium processes.
First Equilibrium Process
A few years ago, I signed up for a timeshare where I could get a vacation for less money. I could enjoy the benefits and having a home away from home from having a WorldMark Timeshare. I could go anywhere like Las Vegas, Hawaii, and other places and stay a week for under $100, instead of spending over $500 a week. As a member, I receive an annual allotment of vacation points to use toward each vacation I take a year. I would then receive the same number of points every year, and some points do roll over to the next year. Each accommodation has a vacation value that is determined by the type of the room and timing of the vacation stay. I would use more vacation points for places like Hawaii because it is very popular. Most of time, my Timeshare does offer gift cards to places like movies, Wal-Mart, JcPenney and even tickets to attractions such as Disneyland or Paramount Great America theme parks.
Second Equilibrium Process
In my personal life I experienced market equilibrating when I got a new job, and let the other job go. When I got the new job, I suddenly experience a personal demand for more goods. A person might go out and buy a new car, new clothing, or go on vacation. If you let go of a job, though, a person will hopefully demand fewer goods, because of having less money. A person will cut back on extras until their personal finances are in equilibrium, meaning a person will not be...