Verified Document

Market Equilibrium Individual Market Equilibration Process The Essay

Market Equilibrium Individual market equilibration process

The laws of supply and demand as they relate to market equilibrium are manifested every Christmas, when children's toys are bought and sold. Quite often there is a hot toy that all children suddenly seem to want. Suppliers cannot manufacture enough toys to suit the demand of parents. As demand increases, price increases. Suppliers, eager to sell more of the desired toy, begin to increase supply to garner the high price the item commands. Eventually, prices become too high and demand drops, stabilizing at equilibrium. After Christmas and after the market grows saturated with the toy, the price drops further as demand drops further. A new equilibrium is reached as the Tickle Me Elmos and Cabbage Patch Kids of yesteryear become discount toys.

Parts of this document are hidden

View Full Document
svg-one

Another determinant is income -- as income rises, so does demand. This suggests that demand for a luxury item like a toy is likely to be highly elastic. Christmas spending will vary from year to year, depending on the health of the economy and the employment rates. Prices of complementary goods will also affect demand -- for example, if prices of Xbox games increase, then demand for Xboxes may decrease as well as the demand for games. Prices of substitute goods will also have an effect -- if an Xbox and a Zhu pet are both on the 'hot' list, parents may opt for the less expensive option.
Not all options influencing demand are so logical. Taste or preferences can also have a substantial impact. Parents may place pleasing their children at a very high premium…

Sources used in this document:
Often, at the beginning of the Christmas season there is a shortage of a particular toy and a surplus afterwards, once all of the desiring parents have bought the toy or an acceptable substitute. However, eventually the market will reach equilibrium of supply and demand, as new parents want the toy and/or buy the discounted version.

Reference

Determinants of supply and demand. (2011). Retrieved September 18, 2011 at http://daphne.palomar.edu/llee/Economics%20100%20Class%204.pdf
Cite this Document:
Copy Bibliography Citation

Related Documents

Technology in Film Fred Ott Was the
Words: 1898 Length: 6 Document Type: Essay

Technology in Film Fred Ott was the very first movie star that every existed. His brief starring role in the five-second film that showed him sneezing started the use of technology to make films. Since then, technology both in and out of film has changed immeasurably and what technology is used and is said about technology in these same films has evolved quite a lot and the statements sometimes made are

Technology Proposal Social Networking and
Words: 1070 Length: 4 Document Type: Term Paper

Creating an effective library social networking platform needs to start with a view of how to create a content management system (CMS) first (Dickson, Holley, 2010). The CMS serves as the system of record of all catalog and collection items, providing valuable statistics on how each book, content and collection item is being used (Shapira, Zabar, 2011). This is extremely valuable information for each department in the library to

Technology for Students With Disabilities
Words: 3214 Length: 11 Document Type: Research Paper

These benefits arise because of implementing both assistive technologies and Information Communication technology (ICT). The implementation of technology in classrooms usually has benefits to both the disabled students as well as the teachers (Kirk, Gallagher, Coleman, & Anastasiow, 2012, p.240). The general benefits of use of assistive technologies and ICT in teaching students with learning disabilities include greater learner autonomy and unlocking hidden potential with those with communication difficulties.

Technology in the Workplace the
Words: 2715 Length: 9 Document Type: Research Paper

Instead, organizations must strike a balance between the autonomy and independence offered by technology in the workplace and the need for employees to have some level of formal and informal commitment to the organization as a whole. Just as seemingly counterproductive activities such as doodling, daydreaming, or, in the information age, surfing the internet, can actually contribute to efficiency by offering employees productive mental stimulation, so too can the

Technology in the Classroom in Today's Society,
Words: 3260 Length: 10 Document Type: Research Paper

Technology in the Classroom In today's society, technology has become an accepted medium for communication. From email correspondence that has taken the place of mail, to texting instead of talking, advances in technology have become integrated into our daily lives. However, the line should be drawn when it comes to technology impeding academics and being incorporated into the classroom. Although many support the notion of technology in the class, others see

Technology Acceptance Model Tam and Information Systems Success...
Words: 4229 Length: 15 Document Type: Literature Review

Technology Acceptance Model Using Technology Acceptance Model (TAM) to Assess User Intentions and Satisfaction on Software as a Service (SaaS): The Value of SaaS Software as a Service (SaaS) was researched by Benlian and Hess (2011) in an effort to determine its value to companies. Among the arguments was that SaaS is already declining in popularity even though it is very new. The majority of the arguments that lean in that direction have

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now