Market Equilibration Paper

In today’s marketplace, it is very important for consumers to recognize and understand the state of the economy, which we live in. Identifying the stability in today’s marketplace will aid consumers in making better choices has it pertains to his or her resources. When there is an understanding of supply and demand consumers are able to deliver a substantial role in how they encounter equilibrium. Although, in 2004 Crockett defined equilibration has the process of moving between two equilibrium points has a result of some change in supply and demand (Crockett, 2004)
According, to McConnell at el (2009) the market equilibrium process is the matching process of supply and demand of the consumers. The legal philosophy of demand is simply the pricing of items as it associates to the demand of items (McConnell, Brue, & Flynn, 2009). …show more content…
All the same, in some markets the sellers are in demand from buyers, which are the foundation of the market equilibration process. However, McConnell at el, (2009) believes that the laws of supply and demand explain how the relationship between cost and quantity relate to the process, which simply explains the increase and decrease of certain products (McConnell, Brue, & Flynn, 2009). Consumers of all products, which includes gas, real estate, retail, music, etc., will consume more of a specific product when the amount of that product decreases, and will purchase or acquired less of the product when the price increase. The sale of new and existing homes continued to come up even throughout the beginning portion of the declining housing market prices for the start to middle summer 2005. The chart below indicates the continuous growth and fall in home prices over the last 7