Market Equilibrating Process

Market Equilibrating Process

Market Equilibrating Process
    Market equilibrium instills a similar concept of mine of when your body reaches hemostasis; a
point when all parts in the body are coordinating a universal stability. The force that moves this
stability into equilibrium is the same for the market equilibrium. A point on a graph when the
quantity demanded and quantity supply intersects and is balanced.
Factors related to price equilibrium are of the following:
    Demand is a schedule or a curve that shows the various amounts of a product those consumers

are willing and able to purchase at each of a series of possible prices during a specified period of

time.   Demand shows the quantities of a product that will be purchased at various possible prices,

other things equal (McConnell, Brue, and Flynn 2009). I was in an industry for 25 years

selling to retail stores in Southwest.   An example of this is using a price of a dress

retailing around $100.00. When the retail store wants to generate revenue, the retailers put dresses

on sale for 40% off. With this reduced price, a shift in quantity demand occurs by having more

consumers come into the store to purchase a dress.   As the price is lowered with dresses, you

notice an inverse relationship between price and quantity, meaning the less dress cost for the

consumer the more of a quantity the store will sell of them.   This is called the Law of Demand.
    The next concept is supply.   By using the above dress example, when the prices decrease, dress

manufactures make fewer dresses. There will be less revenue for these products.   However, when

prices increase, manufacturing increases. This positive relationship between price and quantity is

called the law of supply. When prices fall, dictates the amounts of a product that producers are

willing and able to make available for sale at each of a series of possible prices during a specific...