Marketing_Equilibrating_Paper

Market Equilibrating Process Paper ECON 561 Ceasar B. Hendricks May 11, 2010 Satish Sharma, Instructor Market Equilibrating Process 1 Market Equilibrating Process Paper In order the grasp the overall concept of the market equilibrating process or to understand some of my past experiences, the process must first be defined for clarity. The market equilibrating process is defined “as a situation where the supply of an item is exactly equal to its demand” (Business Dictionary, 2010). The general idea of the market equilibrating process was conceptualized by combining the equilibrium price with equilibrium quantity to yield the balance of a specific or competitive market. My work experience spans from various industries such as retail, education, disaster housing assistance and consulting which I personally feel have given me an edge in that I have insight from many different perspectives. Even with the many activities that I am currently involved in it is imperative to have balance or equilibrium however, over involvement in activities can cause some form of imbalance in our daily lives. Over the years I have taken notice how consumers tend to exceed their resources by purchasing unnecessary items to satisfy a want rather than a need. For example the housing market and its downward spiral which has led to foreclosures and consumers losing their homes due to the same banks that approved the home loans. However, the banks cannot take all the blame for this occurrence of events. Also, I must admit the guilt of purchasing items when either the money was slim but even that situation me the importance of planning and money management. In working in the disaster housing assistance industry and helping families affected by hurricanes Katrina, Rita, Gustav and Ike there was a high demand for housing but the supply was Market Equilibrating Process 2 few. This made our jobs as housing counselors rather difficult in that we had to negotiate with landlords to rent affordable dwellings to our clients. In conclusion, understanding supply, demand and market equilibrium will help in determining whether items are in or out of balance within any economy. Equilibrium will occur where the supply meets demand as long as the planned demand does not equal the planned supply. References Business Dictionary. (2010). “Market Equilibrium”. Retrieved on May 10, 2010 from http://www.businessdictionary.com/definition/market-equilibrium.html McConnell, C. (2009). Economics: Principles, Problems and Policies (18th ed.) New York: McGraw Hill/Irvin