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Market Equilibrium

Equilibration is the process of moving between two equilibrium points as a result of some change in supply or demand.  Understanding how market equilibrium is sought following such a change is essential for business managers. It is important to understand how economic principles, and specifically supply, demand, and their determents are a part of your everyday business decisions.
 

Write a paper, or create a PowerPoint presentation using a real world experience in a free market (not government regulated) to describe a change that occurred in supply or demand as a result of world events that led to the need for a move between two equilibrium states.  Explain the process of how that movement occurred using behaviors of consumers and suppliers.  Graph the movement between the two points as well.  

 

Required Elements: 

  • Include academic research to support your ideas
  • Consider the Law of demand and the determinants of demand
  • Consider the Law of supply and the determinants of supply
  • Describe Efficient markets theory
  • Explain Surplus and shortage
  • Deliver the content in no more than a 700-word paper, OR  7- to 10-slide Microsoft PowerPoint presentation (Please choose one of these choices, not both)
  • Use University of Phoenix Material: Appendix A to create graphs illustrating the movement between the two equilibrium points and include this in the body of the assignment.
  • Your assignment is consistent with APA guidelines.

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