Market_Equil_Proc_Paper

Market Equilibrating Process Paper Melissa Barron Phoenix University ECO/561 The concepts of this week’s readings relate to my current economic state. I’m currently working for the Chicago Public School System and my husband is currently laid off. I am the only one in the household working, and I currently make $27,628.32 before taxes and $23,856.16 after taxes. There are two adults, a twelve-month old, and one dog currently living in my house. My income alone every month has to stretch to pay the mortgage, light, gas, cable, cell phone, grocery bills, and car insurance bills. Ever since my husband has lost his job I have had a different Economic Perspective in the way I carefully pay the bills and buy our groceries. My husband losing his job in this economy has had a major Income Effect on our Grocery Budget Line. I tend to find Food stores who have sales in certain products for a lower price to save a couple of dollars. I also try not to buy items that are unnecessary and would cross my Budget Line. I tend to watch my Income Elasticity of Demand by buying only the necessary amount needed of a certain product for the week. When I go grocery shopping I have to make choices on what to buy, what not to buy, and how much as long as I stay around my Budget. I tend to substitute my products for the generic brand, which are cheaper than the name brand. Sometimes depending on the product I like buying the name brand but it will always depend if it is attainable or unattainable to my budget. I’m always aware of the Price Elasticity of Demand on products because it’s not always the same price when I purchase the product. A couple cents or dollars in increase or decrease makes a lot of difference when you are on a budget. Customers look for the Equilibrium Price of a product that satisfies their budgets each week. Customers make a Purposeful Behavior decision with some desired outcome in mind, which is always to save on groceries bring more home for less. Reference Page McConnell, C. R., Brue, S.L., & Flynn, S.M. (2009). Economics: Principles, problems, and policies (18th ed.). New York: McGraw Hill/Irwin. Chapter 1: Part One: Introduction to Economics and the Economy. McConnell, C. R., Brue, S.L., & Flynn, S.M. (2009). Economics: Principles, problems, and policies (18th ed.). New York: McGraw Hill/Irwin. Chapter 2: The Market System and the Circular Flow. McConnell, C. R., Brue, S.L., & Flynn, S.M. (2009). Economics: Principles, problems, and policies (18th ed.). New York: McGraw Hill/Irwin. Chapter 3: Demand, Supply, and Market Equilibrium. McConnell, C. R., Brue, S.L., & Flynn, S.M. (2009). Economics: Principles, problems, and policies (18th ed.). New York: McGraw Hill/Irwin. Chapter 6: Part Two: Microeconomics of Product Markets.