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, create a video, 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 no more than a 700-word paper, OR 7- to 10-slide Microsoft PowerPoint presentation, OR 2- to 3-minute video (Please choose one of these choices, not all three),