Curated Collections of the Most Useful Facts.

What's This?
Economics-Market Equilibrium

Economics-Market Equilibrium

Market Equilibrium definition and examples provided.

 

Curated by

Ceev Xiong

Ceev Xiong

42 Knowledge Cards

Views    1304

Share     twitter share  

Curated Facts

Europe is the main battleground for gas pricing. In America gas prices are set by the fundamentals of supply and demand (known as gas-on-gas competition), which means they are currently low. In Asia gas is mainly bought and sold at prices set by contracts linked directly to (currently high) oil prices. Europe is somewhere in the middle.

Article: Careful what you wish for
Source: The Economist
Ceev Xiong

Ceev Xiong

42 Knowledge Cards 

How demand and supply affects the market price of gases in Europe, the US, and in Asia.

Reply

A common definition of a monopoly is when a company has such effective control of its market that it can set prices and stifle innovation by depriving competition of any chance of profit.

Article: Monopolies Of Today: Comp...
Source: Com
Ceev Xiong

Ceev Xiong

42 Knowledge Cards 

When a monopoly occurs when a firm prices above the market equilibrium price, to take advantage of the potential benefits--profits.

Reply

But because gold is in finite supply and there's a history of using it as currency, it's often cited as a good inflation hedge. Even if its intrinsic value is questionable, perhaps our fixation with gold as a safe haven is worth something. The thinking goes that if a central bank prints too much money, unleashing rampant inflation, gold will retain its value.

Article: A gold puzzle
Source: The Economist
Ceev Xiong

Ceev Xiong

42 Knowledge Cards 

Ever since the 1900's, according to this article's graph, the real value of gold has been increasing.  Therefore, shifting the market equilibrium price for gold to a new price.

Reply

More lending should mean more buying which could soak up diminished inventory quite quickly, leading to rising prices. That, in turn, may push a lot of developers into action. As construction ramps up, resulting employment growth could boost housing demand, by raising domestic household growth and/or reigniting the flow of immigration. More housing demand means even faster appreciation, fueling the boom.

Article: Could the bubble return?
Source: The Economist
Ceev Xiong

Ceev Xiong

42 Knowledge Cards 

Possibility of bringing the housing market closer to equilibrium.

Reply

workers may be slow to perceive this dynamic and to lower wage expectations enough to find work. Or they may perceive it perfectly well and conclude that there is little sense in trying to find work until the backlog is reduced. These workers, and especially the young people that fall into this category, don't necessarily represent victims of hysteresis. They may opt to stay in school longer.

Article: The bottleneck
Source: The Economist
Ceev Xiong

Ceev Xiong

42 Knowledge Cards 

In short, the labor market is not in equilibrium; otherwise, we would all enjoy lower unemployment rate.

Reply

For the past six years the media have been reporting a shortage of registered nurses (RNs) in the United States. This shortage is most severe for hospitals, in western and southwestern states, in New England, and for specialized advanced practice nurses. Estimates of average nurse vacancy rates at hospitals range from 10.2 percent to 13 percent, with one in seven hospitals reporting more than 20 percent.

Article: Health Affairs
Source: Health Affairs
Ceev Xiong

Ceev Xiong

42 Knowledge Cards 

How markt equilibrium can affect wages and employment--in this case in health care of registered nurses (RNs).

Reply

The net gain to producers, known as producer surplus, develops because the equilibrium price suppliers receive is greater than the minimum price they would be willing to accept to produce. The total producer surplus is equal to the area below market price and above supply up to the equilibrium quantity.

Article: Demand, Supply, and Marke...
Source: Demand, Supply, and Marke...
Ceev Xiong

Ceev Xiong

42 Knowledge Cards 

This content discusses about producer surplus.

Reply

When buyers and sellers voluntarily engage in market exchange, both consumers and producers enjoy a net gain from the exchange. The net gain to consumers, known as consumer surplus, arises because the equilibrium price consumers pay is less than the value they place on the units they purchase. Total consumer surplus from market exchange is measured by the area under demand above market price up to the equilibrium quantity.

Article: Demand, Supply, and Marke...
Source: Online Learning Center
Ceev Xiong

Ceev Xiong

42 Knowledge Cards 

Market equilibrium in the context of consumer and producer surplus.  This content discusses about consumer surplus.

Reply

Equilibrium price is also called market clearing price because at this price the exact quantity that producers take to market will be bought by consumers, and there will be nothing ‘left over’. This is efficient because there is neither an excess of supply and wasted output, nor a shortage – the market clears efficiently. This is a central feature of the price mechanism, and one of its significant benefits.

Article: Market equilibrium
Source: Economics Online
Ceev Xiong

Ceev Xiong

42 Knowledge Cards 

The optimal price for consumers and the optimal quantity produced by suppliers.

Reply

When the supply and demand curves intersect, the market is in equilibrium. This is where the quantity demanded and quantity supplied are equal. The corresponding price is the equilibrium price or market-clearing price, the quantity is the equilibrium quantity.

Article: MARKET EQUILIBRIUM
Source: MARKET EQUILIBRIUM
Player
feedback