Essays on Analysis of Market Stability Coursework

Download full paperFile format: .doc, available for editing

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.


Baldwin, R., Cave, M., & Lodge, M. (2012). Understanding regulation: theory, strategy, and practice. Oxford University Press on Demand.

Brunt, T. M., Poortman, A., Niesink, R. J., & van den Brink, W. (2011). Instability of the ecstasy market and a new kid on the block: mephedrone. Journal of psychopharmacology, 25(11), 1543-1547.

Chhabra, A. (2012). A Risk-Based Asset Allocation Framework for Unstable Markets. CFA Institute Conference Proceedings Quarterly, 29(4).

Eichengreen, B., & Hausmann, R. (Eds.). (2010). Other people's money: debt denomination and financial instability in emerging market economies. University of Chicago Press.

Ismihan, M. & Metin-Ozcan, K. (2009). Productivity and Growth in an Unstable Emerging Market Economy: The Case of Turkey, 1960-2004. Emerging Markets Finance And Trade, 45(5), 4-18.

Janssen, M. A., & Jager, W. (2001). Fashions, habits and changing preferences: Simulation of psychological factors affecting market dynamics. Journal of economic psychology, 22(6), 745-772.

La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate governance. Journal of financial economics, 58(1), 3-27.

Lyashok, V. Regional Labor Markets: Unstable Equilibrium. SSRN Electronic Journal.

Manning, C., & Roesad, K. (2007). The Manpower Law of 2003 and its implementing regulations: Genesis, key articles and potential impact. Bulletin of Indonesian Economical Studies, 43(1), 59-86.

Mikhalevich, M. & Chizhevskaya, A. (2006). Dynamic macromodels of unstable processes in transition to a market economy. Cybernetics And Systems Analysis, 29(4), 538-545.

Minsky, H. P. (1992). The financial instability hypothesis.

Peters, E. E. (1994). Fractal market analysis: applying chaos theory to investment and economics (Vol. 24). John Wiley & Sons.

Restuccia, D., Spizzirri, U. G., Parisi, O. I., Cirillo, G., Curcio, M., Iemma, F., ... & Picci, N. (2010). New EU regulation aspects and global market of active and intelligent packaging for food industry applications. Food Control, 21(11), 1425-1435.

Stango, V., & Zinman, J. (2011). Fuzzy math, disclosure regulation, and market outcomes: Evidence from truth-in-lending reform. Review of Financial Studies, 24(2), 506-534.

Stiglitz, J. E. (2000). Capital market liberalization, economic growth, and instability. World development, 28(6), 1075-1086.

Download full paperFile format: .doc, available for editing
Contact Us