Market equilibrium Research Paper Example | Topics and Well Written Essays - 750 words

Market labyrinthine sense - Research Paper ExampleProduction and consumption of goods and work are influenced by several factors. However, it is expenditure to note that there are critical aspects of the society that determines demand and supply. In the context of economics, the society is invariably entangled in a struggle to satisfy its diverse needs with limited resources. Ex variegate of goods and services constitutes market and is subject to natural or artificial forces (Dwivedi,2010). The goal of the society has remained achieving counterbalance in the market. In other words, market equilibrium is a state of balance between goods and services supplied and demanded. Under this control expenses and measure are reconciled between the seller and the buyer. For instance, assuming the equilibrium price is Pe and equilibrium quantity is Qeit mean that the seller and the buyer has consented the quantity and prices. A diagrammatical presentation of a market equilibrium can be sho wn below.Supply and demand curves.(Fig.1)The figure .1 above shows the supply and demand curves with the convergent points indicating equilibrium. This Pe represents equilibrium price and Qe representing equilibrium quantity. It is worth to note that the highlighted prices and quantity stated are mutually accepted by the twain parties to the agreement. In other words, there are times when the demand and supply of goods shows no tendency to change and this constitutes market equilibrium. The price changes are a function of equilibrium status of the market.