Pricing_Strategy_Recommendations

ECO 561-Week 1-King This paper discusses market equilibrating process as it relates to the concepts of my prior experiences in the world. As it is knowing, market equilibrium and capacity planning are closely related and linked to supply and demand. For this reason, shortages cause the price of a given product to rise in value on the world market, while the over abundance product causes that particular product to drop in value. Therefore, considering the main point of the two is defined as market equilibrium. Thus, in capacity planning, the planner seems to create what is referred to as market equilibrium in his work force. Considering the supply and demand, the company needs to meet its changing demands as it relates to products and services. The particular reason of objective capacity planning is to obtain a smooth operation in resource consideration as applied to the organization assets with minimum of downtime in maximizing effective profitability of the organization. As I consider market equilibrium process, the real details of the flow is in particularly hard to understand. Consequently, we need to analyze the global economic world and determine the needs of customers on an international level and define the market’s reactions as applied to the equilibrium process. Finding the balance in the market can be compared to as finding equilibrium in our day to day lives. In-order for someone to find equilibrium, that person must recognize the demand and supply for his/her services as relates to the rest of the community in which that person resides, inconsideration of social and business wise. Basing on my own personal experience with my parents being self employed by operating a home care business in which they were giving care to elders and sick people that could not care for themselves. They also trained nursing assistants to pass medicine to the elders and disabled. These nursing assistants were sent to homes that needed them because the hospitals and nursing homes could not accommodate them. Therefore my parents’ business were in demand because qualified nurses were in demand to work in those homes. Very importantly, predictors of the increase in demand for a product or services destroyed when the economic got worst. The hospitals and nurse homes lost their funds given by the government the elders could not afford the help anymore. My parents lost their business and went out of business When a product reaches a certain price, the price can persuade people to look for different ways in dealing with the demand. This may cause people to consume less, or to simply stop consuming that particular product altogether. However, in a free market economy competitors can also influence decrease or increase the cost of a particular product on the market. Today’s society coordinates its wants, needs and desires in many ways and to this, it must study social mechanisms, political realities and social customs. As it is, economics is the social science that examines how individuals, institutions and society make optimal choices conditions of scarcity, (McConnell, Bruce, & Flynn, 2009).