Market Equilibrating Process Paper

ECO 561

Market Equilibrating Process Paper

The principles of economics influence people's lives every day. Consumers make purchases driven by need for food, gasoline, and a myriad of other goods and services to sustain their daily lives. Economists have made a career developing theories attempting to quantify the rationale of consumption.

This paper will attempt to describe the most common principles of economics. These principles include the law of supply and demand, market equilibrium, surplus and shortage, and Efficient Markets theory. Further, these concepts will attempt to show correlation between supply and demand along with the business or investment decisions derived from these doctrines.

Law of Demand and the Determinants of Demand

The...