University of Phoenix
In this paper I will explain the Marketing Equilibrating Process in relation to my experience. I will provide the definition of ENP, supply demand, the efficient markets theory surplus and shortage. I will discuss the laws of supply and demand their determinants and how they relate to the process. I will use my real life experience to further discuss this process. I will take all the information above and describe to you how each is used to determine the Marketing Equilibrating Process.
The Marketing Equilibrating Process is a situation where the supply of an item is exactly equal to its demand. Since neither there is surplus nor shortage in the market, there is not innate tendency for the price of the item to change. Tutor2u describes it as the following: “Equilibrium means a state of equality or a state of balance between market demand and supply. Without a shift in demand and/or supply there will be no change in market price http://www.tutor2u.net/economics/revision-notes/as-markets-equilibrium-price.html Before I can continue my discussion on the Marketing Equilibrating Process I need to talk about the factors that go into determining the Marketing Equilibrating process. Supply
Supply is defined as the quantity of a product that a producer is willing and able to supply onto the market at a given price in a given time period. The Law of Supply states that all things being equal, as the price of a good or service increases, the quantity of that good or service offered by suppliers’ increases and when the price of a good or service decreases the quantity of that good or service offered by suppliers’ decreases. The authors of our book identify the determinants of supply as resources prices, technology, taxes and subsidies, price of goods, producer expectations, and the number of sellers in the market. (McConnell, Brue and Flynn 2009) I purchased my car three years...