Eco 561 Market Equilibrium

Market Equilibration Process Paper
ECO 561
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June 16, 2015

Market Equilibration Process Paper
      A study by Poctzer, A., Poctzer, S., (2010) examined marketing and economics disciplines shared interest in consumer behavior within micro and micro levels. Through exploring microeconomics the studies of economic variables concerning individual nature explain resource allocation, decision making, and policies for pricing. The relationship of consumer and supplier depending on the market fluctuations and synonymous with different concepts, theories, research, and approaches identify disciplines that can be relevant, create solutions, and conditions exchanged in marketing and economics. Furthermore, economics studies various alternates of human wants, desires decision making mechanisms (Poctzer, A., Poctzer, S., 2010). Economics divides into macroeconomics, and microeconomics to form policies for businesses and decision making.
Market Equilibrating Process
      Market equilibrium is the process when the number of goods supplied equals the number of goods in demand. Once the number of goods supplied equals the number of goods demand, the market situation at that moment is said to be in equilibrium. Law of demand and law of supply state other things remaining the same, with every fall in the price of a particular product, its demand goes on increasing. Various factors like income level of consumer, tastes and preferences of the consumer, prices of related goods (substitutes), expectations about the prices or incomes in the future, size of population, advertising efforts and other factors that are capable of affecting the demand (McConnell, Brue, & Flynn, 2009).

      Elasticity is one of the most important concepts in economics. A thorough understanding of elasticity can be of use in understanding the way that firms price their products, the way that government sets tax rates, and the way that public policy works or not....