Eco-561_Market_Equilibrating_Process_Paper

Individual Assignment: Market Equilibrating Process Paper Understanding how market equilibrium is maintained is essential for business managers. As a manager, it is important to understand how economic principles, and specifically supply and demand, are a part of your everyday business decisions. For this assignment, relate the concepts of the market equilibrating process in the Weeks One and Two readings and learning activities to a prior real-world experience occurring in a free market. The experience does not necessarily have to be work related. • Explain the market equilibrating process in relation to your experience. Include academic research to support your ideas. • Consider the following components in your explanation: Law of demand and the determinants of demand Law of supply and the determinants of supply Efficient markets theory Surplus and shortage • Use University of Phoenix Material: Appendix A to create graphs illustrating the equilibrating process in price relation to the shift in supply and demand. • Deliver the content as a 350- to 500-word paper, 7- to 10-slide Microsoft® PowerPoint® presentation, 2- to 3-minute video, or 1-page comic strip illustration. • Format your citations and references consistent with APA guidelines. Because this assignment is a personal reflection, use first-person pronouns when applicable. |Content |Points Available|Points Earned|Additional Comments: | |60 Percent |4 |X/4 | | |The paper relates the concepts in this | |3.7 | Overall good section but need just a little more | |week’s readings to a prior real world | | |explanation of the specific details of the market | |experience. | | |equilibrating Process and mention of efficient markets | |The paper discusses the market | | |theory along with some additional scholarly cites | |equilibrating process in relation to | | | | |the experience. | | | | |Major points are stated clearly and are| | | | |supported by specific details, | | | | |examples, or analysis. | | | | |Organization / Development |Points Available|Points Earned|Additional Comments: | |20 Percent |1 |X/1 | | |The paper is no more than 500 words in | |.9 |See WritePoint comments for a couple of minor errors | |length. | | | | |Paragraph transitions are present, | | | | |logical, and maintain the flow | | | | |throughout the paper. | | | | |The tone is appropriate to the content | | | | |and assignment. | | | | |Sentences are complete, clear, and | | | | |concise. | | | | |Mechanics |Points Available|Points Earned|Additional Comments: | |20 Percent |1 |X/ | | |The paper follows APA formatting | |0.9 | See WritePoint comments for a couple of minor errors | |standards. | | | | |Citations of original works within the | | | | |body of the paper follow APA standards.| | |Need some headings and subheadings for clarity | |The paper is laid out with effective | | | | |use of headings, font styles, and white| | | | |space. | | | | |Rules of grammar, usage, and | | | | |punctuation are followed. Spelling is | | | | |correct. | | | | | |Total Available |Total Earned | | |  |5 | 4.5 |  | Overall Comments :Good Kindle discussion Need Headings & Sections; See comments above and on paper; need a few more scholarly references– particularly to the market equilibrating process; need to briefly mention the efficient markets theory A little late Market Equilibrating Process Paper Sarita M. Bhatt ECO-561 February 23, 2011 Paul D. Loreto, J.D., M.B.A., L.L.M., B.M.E. Market Equilibrating Process Paper In relating the concepts of the market equilibrating process, I chose to research the Amazon Kindle. I researched the beginnings of Kindle sales, price, marketing strategies, and eventual market equilibrium of supply and demand. I chose to write about the Kindle because I find it fascinating how fast technology is making ideas, processes and products that I grew up with change in regards to accessibility and availability. Economic equilibrium is a state in which economic forces are balanced. These economic variables will be unchanged from their equilibrium values in the absence of external influences. Economic equilibrium may also be defined as the point where supply equals demand for a product – the equilibrium price is where the hypothetical supply and demand curves intersect (Investopedia, 2011). . In considering the state of equilibrium it is also important to understand the law of supply and demand. The law of supply and demand is a theory explaining the interaction between the supply of a resource and the demand for that resource. The law of supply and demand defines the effect that the availability of a particular product and the desire (or demand) for that product has on price (McConnell, Brue, & Flynn, 2009). Generally, if there is a low supply and a high demand, the price will be high. In contrast, the greater the supply and the lower the demand, the lower the price will be. The equilibrium price can be graphically represented as: [pic] where S is the supply curve and D is the demand curve and the equilibrium price will be where the two curves intersect. Amazon released the Kindle First Generation on November 19, 2007, for $399 USD and was sold out in five and a half hours. The device remained out of stock for five months until late April 2008. Amazon did not sell the Kindle First Generation outside the United States. On February 10, 2009, Amazon announced the Kindle 2. It became available for purchase on February 23, 2009. On October 22, 2009, Amazon stopped selling the original Kindle 2 in favor of the international version it had introduced earlier in the month. On October 22, 2009, Amazon lowered the price on the international version from $279 to $259 and discontinued the U.S.-only model. On June 21, 2010, hours after Barnes & Noble lowered the price of its “Nook”. Amazon lowered the price of the Kindle 2 to $189, undercutting the Nook by $10. Amazon announced a new generation of the Kindle on July 28, 2010. Specific Kindle sales numbers are not released by the company; however, according to James McQuivey of Forrester Research, estimates are ranging around four million, as of mid-2010. Currently the Amazon Kindle sells for $139 USD (Frey & Cook, 2011). Market products are continuously taking into account consumer demands and using technology to enhance their desirability. The new products also take into account our diminishing natural resources and the inventive ways of creating substitutes. Ok but strengthen the conclusion [Your paper will benefit from a stronger conclusion. A concluding paragraph summarizes the main idea, ties the main points together neatly for the reader, and ends with a sense of finality. ] References Frey, C., & Cook, J. (2011). How Amazon.com survived, thrived and turned a profit. Retrieved from http://seattlepi.com Investopedia. (2011). Economic Equilibrium. Retrieved from http://investopedia.com McConnell, C., Brue, S., & Flynn, S. (2009). Economics: Principles, problems, and policies (18th ed.). New York, NY: McGraw Hill/Irvin.