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. 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 products in the papers can lead a consumer to change their mind on where to purchase their 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 economic forces. Equilibrium means balance. In my life, I have learned by experience, the concept that if you over value yourself or take out loans without proper planning for repayment, you create an imbalance in your life. I have also learned from this week’s reading, that many people exceed their resources in order to purchase products that they do not need and forgo paying their bills in order to be able to pay for these products. This is something that I have also experienced in the past. One example I am guilty of is eating out, when 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 exceeds the balance of a personal account.