Words of Wisdom:

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Market Equilibrating Paper
University Phoenix
Economics 561
May 7, 2012
Jonna Noe










  In the study of economics supply and demand is essential when seeking to understand how open markets operate.   The use of supply and demand can offers various indicators that reveal the decision process that takes place between a buyer and seller when seeking equilibrium. In addition, the value of market equilibrating process is focused on the dealing when buyers and suppliers adjust price to achieve a balance between supply and demand, thus producing equilibrium. Consequently, there must be competition to ignite the equilibrium process (McConnell, Brue & Flynn, 2009).

      The market equilibrating process has many applications in my personal experience but revealed profoundly in my finances. By using the supply curve along with the demand curve, I am able to plot where my income and expenses meet, this point is considered the equilibrium point. The equilibrium point also represents a breakeven point for my budget. I have discovered there are many variables that can manipulate the supply and demand curve, which invariable changes the equilibrium amount. The accumulated debt is the most damaging part of my budget; which is created by credit cards and bank loans.
      Generally I use loans and credit cards which provides me the ability to purchase various products not affordable at a given time, by making monthly payments that fall under my equilibrium point.   m


      Loans and credit cards make it possible to purchase items that are currently out of reach to pay in full at the moment to more attainable monthly payments within the equilibrium point.   But should the supply of income diminish or be lost, the demand of debts and expenses would be out of range for me to afford. My choice to open loans is a gamble against the odds that I will not lose my supply of monthly income. The longer time it takes to pay the loan the higher the risk that my...

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