The paper "Analysis of Market Stability " is a great example of marketing coursework. Markets form a very fundamental factor in ensuring economic balance. The issue around economic markets is best understood when studied under market structures. Economists have asserted that markets are the most unstable structures and are in constant need of organization, control and regulation. The study presented herein attempts to establish the truth in the assertion. Additionally, it endeavors to find out whether markets are always in the imbalanced state or not and establish the reason as to why.
Further, the study attempts to find out the extent of the effect of market state on the competition. Finally, the study sheds significant light on the importance of stable prices and stable markets to the economy and the government. The concerns addressed in this paper are indeed vital in ensuring that the economy is always in the pink and safe. Economics is mostly concerned with socio-economic issues including fair prices and fair competition, managerial problems and microeconomic problems. Moreover, economics is concerned with production, consumption and transfer of wealth within and without parties and states thus a need for regulation of the market in order to have a balanced equilibrium (Lyashok, n.d). Economics and markets are correlated in that scholars cannot talk of the two without mentioning of commodity prices and how they affect market decisions.
Price being the monetary value attached to a given commodity at that particular time of disposal whereas the market price is the price at which suppliers or sellers are willing and able to dispose of their goods or services and the buyers or consumers are willing and able to buy or pay for the goods or services respectively at that particular time of the transaction (Mikhalevich & Chizhevskaya, 2006).
The point at which the market price is met is dubbed as market equilibrium price. Any point above or below the market equilibrium price will result in market disorientation termed as price instability (Peters, 1994). Whenever market prices are equilibrium the market shall be dispensable of any market of adjustments as buyers shall be contented with the going prices and suppliers shall be highly willing to supply hence resulting in market equilibrium condition.
Economic equilibrium is a state where supply and demand among other economic factors are balanced per se without the influence of external factors (Lyashok, n.d). For instance, in the case of perfect competition equilibrium is achieved when demand and supply are in equal. In such a market structure, the quantity of goods and services availed by sellers to the market equals the number of goods and services buyers are willing and able to purchase hence eliminating cases of market saturation or shortages. Economic equilibrium Market price equilibrium Minsky, (1992) in his definition purports that the market is not necessarily a place but a means by which goods and services get exchanged and how buyers and sellers co-relate with each other.
The modern market goes beyond a formal physical market as it gets incorporated into the progressive technology and internet making markets to be virtual rather than physical. However, irrespective of the transaction place, an ideal marketplace remains unstable.
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