Assignment:
Equilibration is the process of moving between two equilibrium points as a result of some change in supply or demand. Understanding how market equilibrium is sought following such a change is essential for business managers. It is important to understand how economic principles, and specifically supply, demand, and their determents are a part of your everyday business decisions.
Write a paper, or create a PowerPoint presentation using a real world experience in a free market (not government regulated) to describe a change that occurred in supply or demand as a result of world events that led to the need for a move between two equilibrium states. Explain the process of how that movement occurred using behaviors of consumers and suppliers. Graph the movement between the two points as well.
Required Elements:
• Include academic research to support your ideas
• Consider the Law of demand and the determinants of demand
• Consider the Law of supply and the determinants of supply
• Describe Efficient markets theory
• Explain Surplus and shortage
• Deliver the content in a 7- to 10-slide Microsoft PowerPoint presentation
• Use Appendix A to create graphs illustrating the movement between the two equilibrium points and include this in the body of the assignment.