Market Equilibrium War Outbreak
What are the effects of Market Equilibrium at the outbreak of War on the Economy?

Over the decades, there has been the continuing debate about the underlying effects that war is having on the economy. At the heart of this argument, is the belief that once a war begins it will have a positive impact. This is because it effectively, controls the forces of market equilibrium. Simply put, this is when there is a perfect balance between: supply and demand. As this helping to: ensure price stability. The reason why, is because of: the massive amounts of spending and the allocation of various resources in supporting these efforts. ("Market Equilibrium") Once this takes place, it means that there will be the ideal conditions for the economy to begin to experience above average growth. As there are no economic forces, that can create the kinds of situations to cause…...

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Bibliography

"Consequences of War on the Economy." Maliganani, n.d. Web. 21 Mar. 2011.

"Market Equilibrium." Business Dictionary, 2011. Web. 21 Mar. 2011.

Campagna, Anthony. The Economic Consequences of the Vietnam War. New York: Praeger, 1991. Print.

DeGrasse, Robert. Military Expansion, Economic Decline. Armonk: Sharpe, 193. Print.

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.

Price alone is only one determinant of demand. Another determinant is income -- as income rises, so does demand. This suggests that demand for…...

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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

The price is so high, consumers begin to become reluctant to pay for the item. etailers must lower prices to unload their excess inventory of Tickle Me Elmos, Cabbage Patch Kids, or Zhu pets.
A state of perfect equilibrium for a long period of time is rare. Perhaps one example of perfect equilibrium might be found at an elementary school that sells pizza to its students. The demand is relatively constant, given that the student population remains the same from week to week, and students have relatively few other options. Students whose parents give them money for pizza have no choice but to buy food on-site, since they have cannot eat otherwise; students who 'brown bag it' are unlikely to buy lunch, even if the pizza is substantially cheaper one day. Because lunchtime is finite, few students have the time to eat more than one or two slices, so they…...

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References

Demand, supply, and market equilibrium. (2010). Prentice Hall. Retrieved March 2, 2010 at  http://wps.prenhall.com/bp_casefair_econf_7e/30/7931/2030537.cw/index.html 

Market equilibrium. (2010). Business Dictionary. Retrieved March 2, 2010 at  http://www.businessdictionary.com/definition/market-equilibrium.html

Market Equilibrium Process
Good luck finding a market that does not have some sort of government interference. Is there some sort of tax-free product, produced by an unregulated business, that I don't know about? Economic models are never based in reality, just a hypothetical world in which all external factors are stripped away, so that simple models can be built to understand how specific critical elements within these models relate to one another. So let's dispense with the silliness and get to work, looking at hypothetical products in a hypothetical free market. We are talking about the market for widgets.

The law of demand states that as the price of widgets increases, demand for widgets decreases. The law of supply states that as the price for widgets increases, the supply of widgets increases. The determinants of demand for widgets are price, the availability and price of any substitutes, and the availability and…...

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References

Economics Online (2015). Equilibrium. Economics Online. Retrieved June 1, 2015 from  http://www.economicsonline.co.uk/Competitive_markets/Market_equilibrium.html 

St. Louis Fed (2015). Market equilibrium -- the economic lowdown. Federal Reserve Bank of St. Louis. Retrieved June 1, 2015 from  https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-8-market-equilibrium

In economic terms this can be represented as a graph, with two lines; one for the way demand emerges and one for the way supply emerges. The demand line shows the way demand will manifest; the usual pattern is that as the price of a good increases less people will want to buy it, this decrease the demand (Gillespie, 2010). If shown on a graph, the line representing the demand will show that when the price is high there will only be a low quality of goods demanded, but as the price decreases the quantity that people want to buy will increase. The line representing supply will show the opposite; when the price for a particular good is low the suppliers are less likely to be attracted to selling that good compared to when the price is high and there is an increased potential for a higher profit margin.…...

In the introductory stage, every additional hour of labor purchased by a firm will yield large marginal revenue. However, as the increasing workforce produces a greater quantity of products, there may be a surplus and not enough demand for the goods. Additionally, after a certain point, extra workers and extra hours can be unproductive. Thus, after a point each additional hour of work will yield less revenue, which drags down the labor MPR below the wage and eliminating the market equilibrium of labor.
Firms will logically hire a new worker or pay for extra hours only insofar as it is profitable. As the labor MRP falls, firms will hire less additional labor. When the MRP is high, they will purchase additional labor. Thus a firm's labor demand is directly correlated to the labor MRP.

The Effect of Regulation on the Labor Market

When the government refrains from placing certain restrictions of wage…...

Economics -- Supply and Demand of Coffee Beans
In many respects, coffee (in its final forms) is a consumer product whose profitable sale and value fluctuate in accordance with traditional economic principles of supply and demand very much like other consumable consumer products. In other respects, coffee is insulated from some of the factors that typically dictate the relative price of other consumer products. Specifically, coffee is a product whose demand remains relatively constant, or in economic terms, the market for coffee is inelastic (Mankiw, 2008) because people generally continue to purchase coffee in the same quantities regardless of increases in its price.

The Influences on Consumer Habits and Demand for Coffee

Generally, consumer consumption of coffee remains quite constant in terms of their style of consumption because the product is almost always part of very habitual routines. People drink approximately the same amount of coffee at approximately the same times of day…...

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References

Goldstein, J. "Why Coffee Is Getting More Expensive." (August 23, 2010). Retrieved

from the National Public Radio website at:

 http://www.npr.org/blogs/money/2010/08/23/129378313/why-coffee-is-getting-more-expensive 

Mankiw, N.G. (2008). Principles of Economics. Chula Vista, CA: South-Western

Equilibrium and Barriers
Barriers to Entry and Long-Term Equilibrium in Monopolistic Markets: Strategy and Market Forces

Introduction Marginal Equilibrium

Barriers to entry can arise out of natural market forces as well as through careful strategic creation or enhancement by incumbent organizations that have a great deal of control over a given market and/or industry. When a specific organization has established a monopolistic or near-monopolistic control over its market and enjoys a great deal of stability and equilibrium with some price flexibility as well, it can be very much in its interest to erect or encourage barriers to entry that thwart the possibility of other entrants into the market, disrupting this equilibrium. As mentioned, many of these barriers to entry arise on their own out of market forces, but they can also be encouraged by strategic decisions within incumbent organizations that influence the market generally and at times explicitly.

Before examining how these barriers can…...

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References

Arping, S. & Dlaw, K. (2007). Sunk costs, entry deterrence, and financial constraints. International Journal of Industrial Organizations 26(2), pp. 490-501.

Baumol, W. & Blinder, A. (2008). Microeconomics: Principles and policy. Mason, OH: Cengage.

Bernanke, B. (2003). Principles of microeconomics. New York: McGraw Hill.

McNutt, P. (2008). Signaling, strategy, and management type. Donegal & Dublin.

Market Equilibration
The process of achieving a market equilibrium relies on some basic principles. The principle of demand holds that, all other things being equal, the higher the price of a good the less people will demand of that good (Investopedia, 2012). There are exceptions to this law, for example goods with inverse price elasticity of demand, but in general the law of demand holds for all goods, even those with very low price elasticity of demand.

The law of supply is the inverse. It holds that all other things being equal the higher the price of a good, the more suppliers will want to provide. Thus, as prices rise, the supply of a good will rise because the profit associated with the production of that good will increase, but the lower the demand will be, because the buyers' marginal utility will decrease.

Those other things that must be equal, however, are the…...

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Works Cited:

Investopedia. (2012). Economics basics. Investopedia. Retrieved April 11, 2012 from  http://www.investopedia.com/university/economics/economics3.asp#axzz1rk5hnhyh 

Riley, G. (2006). AS markets and market systems. Tutor2U.net. Retrieved April 11, 2012 from  http://tutor2u.net/economics/revision-notes/as-markets-equilibrium-price.html

The total supply of milk might remain the same, because the remaining high-efficiency producers are likely to be able to earn profits at this level of output. In the long-run, however, lower prices are going to sustain the quantity of milk demanded at higher than equilibrium levels, and the profits available to producers at lower than equilibrium levels. Producers, in their efforts to control costs, are going to reach a point of diminishing returns on those efforts. The result of this is that the market for milk will eventually become so distorted by the price ceiling that the government is forced to raise the price ceiling in order to ensure that there are producers remaining in the market. The government will have created a situation where to simply maintain the milk market requires active management.
2. There are several factors that contribute to the price elasticity of demand. One factor…...

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Works Cited:

Rittenberg, L. And Tregarthen, T. (2009). Chapter 3: Demand and Supply. Section 1 and 3. Principles of Microeconomics. FlatworldKnowledge.com. Retrieved December 2, 2011 from: click here

Rittenberg, L. And Tregarthen, T. (2009). Chapter 4: Applications of Demand and Supply. Section 1 and 3. Principles of Microeconomics. FlatworldKnowledge.com. Retrieved December 2, 2011 from: click here

Rittenberg, L. And Tregarthen, T. (2009). Chapter 5: Elasticity and a Measure of Response. Section 1 and 2. Principles of Microeconomics. FlatworldKnowledge.com. Retrieved December 2, 2011 from: click here

Market Equilibration Process for Computer Peripherals
That Experience High Level of Cyclicality

The demand for computer peripherals in general for the inkjet and low-end nonimpact printers specifically has continually proven to be highly inelastic, where price reductions are not as effective as a continual stream of new product innovations. Having completed internships with peripherals manufacturers, this observation became very clear as product management and marketing teams continually tested the market equilibration process with price reductions, bundling suppliers and extending the overall warranty period as well. When the law of demand is applied to computer peripherals in general and inkjet printers specifically, the inelasticity of these markets becomes more pronounced and the ancillary process workflows emerge as the primary differentiators.

Analysis of Market Equilibration Process for Computer Peripherals

In the absence of highly elastic product demand and exceptional product differentiation that leads to unitary or highly elastic demand curves for products, the supporting processes and…...

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References

Leijonhufvud, A. (2009). Limits to the equilibrating capabilities of market systems. Journal of Economic Interaction and Coordination, 4(2), 173-182.

Matsushima, N. (2004). Technology of upstream firms and equilibrium product differentiation. International Journal of Industrial Organization, 22(8), 1091-1114.

Over the last few years, the government has exerted more control on the insurance industry by controlling premium rates meaning the industry has become less competitive on pricing. In addition to this, through Obamacare, the government has set requirements for healthcare insurers which have significantly reduced their medical loss ratio Dinan 396.
The second factor that affects the degree of competitiveness of the industry is the number of companies operating in the industry. This has been the major reason for the hundreds of mergers in the industry since this is the major driving factor for changes in market share. The last factor is government-provided health insurance. The government provides insurance plans which create significant competition for the private companies Vanness and olfe 101()

The productivity measures that can be developed are the number of health insurance consumers, average cost of providing medical cover and price of health insurance premiums. The number…...

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Works cited

Austin, D. Andrew, and Thomas L. Hungerford. The Market Structure of the Health Insurance Industry. Washington, DC: Congressional Research Service, 2009. Print.

Baughman, Reagan. "Differential Impacts of Public Health Insurance Expansions at the Local Level." International Journal of Health Care Finance and Economics 7.1 (2007): 1-22. Print.

Dinan, John. "Shaping Health Reform: State Government Influence in the Patient Protection and Affordable Care Act." Publius 41.3 (2011): 395-420. Print.

Dossche, Maarten, Freddy Heylen, and Dirk Van den Poel. "The Kinked Demand Curve and Price Rigidity: Evidence from Scanner Data." The Scandinavian Journal of Economics 112.4 (2010): 723-52. Print.

Market Patterns
One industry that has shifted in the past few years in terms of its structure is the smartphone operating system market. A few years ago, most of the early smartphones were based around proprietary operating systems. Palm and Blackberry dominated the market. Apple joined the industry with the introduction of the iPhone, but more recently other firms have entered the market as well, including Google (Android), indows, Symbian and other systems. The market has moved from a stable oligopoly of four firms basically between two firms into a market that is much closer to monopolistic competition. However, there is the risk that as operating systems shake out, the market could return to an oligopoly of just three operating systems (est & Mace, 2007).

In the short-run, firms in this industry will seek to gain market share through differentiation. The products are slightly differentiated from each other -- they perform the…...

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Works Cited:

West, J. & Mace, M. (2007). Appropriability, proximity, routines and innovation. Druid Summer Conference 2007. Retrieved February 4, 2012 from http://www2.druid.dk/conferences/viewpaper.php?id=1675&cf=9%20{^

Seppala, (no date). Monopolistic competition. University of Illinois. Retrieved February 4, 2012 from http://www.econ.uiuc.edu/~seppala/econ102/lect15.pdf

Watkins, T. (no date). The transaction cost approach to the theory of the firm. San Jose University. Retrieved February 4, 2012  http://www.sjsu.edu/faculty/watkins/coase.htm 

Blodget, H. (2011). Android is destroying everyone, especially RIM -- iPhone dead in water. Business Insider. Retrieved February 4, 2012 from http://articles.businessinsider.com/2011-04-02/tech/30089528_1_android-phones-google-s-android-smartphone-market

Rational firms will choose the lowest-cost option between the two. The market is expected to be efficient, so that while some firms will find it cheaper to pollute, other firms will find it cheaper to install pollution abatement mechanisms.
Ultimately, the system will seek to deliver the lowest per-unit cost of abatement. This will be achieved because the firms that are going to abate their pollution are the ones for whom the cost of abatement is lower than the cost of polluting. With these firms focused on their abatement efforts, they will deliver a greater degree of pollution abatement at a lower per-unit cost with the marketable permits than any other system.

To see the value in this system, the alternative must be considered. If firms are mandated to reduce pollution, they will do so to bring themselves under the maximum allowable pollution levels. However, firms will have no economic incentive…...

Market Efficient espect Set Information Impossible Makes Abnormal Profits
Market Efficient

In his work, Fama argued that given the massive use of resources by the brokerage firm to conduct studies on trends in the industry, the effects of changes in interest rates on corporate balance sheets and expectations of managers and/or political analysts of the companies should be able to systematically beat a generic portfolio with the same risk characteristics.

Since, according to Fama, professional in every situation, the analyst has a fifty percent chance of beating the market; although its specific capabilities did not exist he would beat a lot of the market. The analyst did "help" the market to be efficient if all the investors, in fact, would hold portfolios composed of stock indices, would open up significant opportunities for professional traders to take advantage of the situation. But the movement of traders to that "new market" would mean that the…...

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References

Arrow, K.J., 1959. 'Toward a theory of price adjustment', in M. Abramovitz (ed.), The Allocation of Economic Resources, and Stanford: Stanford University Press, pp. 41 -- 51.

Aumann, R.J., 1964. "Markets with a Continuum of Traders," Econometrica, Vol. 32, No. 1/2, Jan. - Apr., pp. 39 -- 50.

Clifton, J.A., 1977. "Competition and the evolution of the capitalist mode of production," Cambridge Journal of Economics, vol. 1, no. 2, pp. 137 -- 151.

Frank, R., 2008. Microeconomics and Behavior 7th ed. (McGraw-Hill) ISBN 978-007-126349-8.

1. The impact of supply and demand on interest rates in HSBC Bank
2. The role of elasticity in determining pricing strategies in HSBC Bank
3. The concept of opportunity cost in investment decisions at HSBC Bank
4. The influence of market structure on competition and pricing in HSBC Bank
5. The effects of government regulation on the banking industry and HSBC Bank specifically
6. The relationship between marginal utility and consumer behavior in the banking sector, with a focus on HSBC Bank
7. The concept of economies of scale and how it applies to HSBC Bank's operations and growth strategies
8. The principles of cost-benefit analysis....