ECO 561 Week 2

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 choosing a commodity to analyze 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: 

COMMODITY CHOSEN IS APPLE IPHONE 

• 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.  You can use a hypothetical situation that explains this (i.e. what environmental factors).
• What factors changed and graph these changes to reflect the change in equilibrium.
• Deliver the content in no more than a 700-word paper.
• You can use your own graphs or Appendix A to create graphs illustrating the movement between the two equilibrium points and include this in the body of the assignment.
• Assigment must be consistent with APA guidelines.  
• Must be original and plagarism free.