Brooke Massey March 10, 2020 Week 2 Discussion Post Equilibrium prices and their quantities are able to be tracked and resourceful in order to have factual data to determine by the intersection of supply and demand, and if changes occurred. When there has been a change in supply and demand it could ultimately change the price and the ability to offer the quantity of demand for the better equilibrium of more positive prices to consumer and profit to that market. The equilibrium of supply and demand for consumers and the market greatly affects the stability and balance of it withstanding positive results and being efficient. Budget constraints have increased since consumers, including myself, only can spend so much; which, additional constraints can be the drive for more marginal s utilities. Today the very firms who sell services or products of supply are now the buyers within the labor markets, due to the fact they need and rely on the workers that design, make, package, and distribute them. These firms are only able to buy whatever labor they may need up to a certain point in their marginal revenue product labor as long as it is equal to the standard market wage currently. So, once they have determined the amount of labor is necessary and adding that cost which is represented by the market wage, thus they become buyers in the same way consumer buyers are in any market. “Some studies have found that people prefer spending money on experiences rather than goods, which seems perplexing, since goods can last a long time, while experiences are fleeting. A recent study has shown that most people value experiences more than buying material goods, but only if their income exceeds $25,000; otherwise, low income people prefer to buy material goods.” (Spaulding, William C.) Resources Episode 14: Market Equilibrium. Authored by: Dr. Mary J. McGlasson. Located at: https://youtu.be/W5nHpAn6FvQ?t=1s. License: CC BY-NC-ND: AttributionNonCommercial-NoDerivatives Supply, and Equilibrium in Markets for Goods and Services. Authored by: OpenStax College. Located at: https://cnx.org/contents/aWGdK2jw@11.346:D3bzsNhU@8/Demand-Supply-andEquilibrium-. License: CC BY: Attribution. License Terms: Download for free at http://cnx.org/contents/4061c832-098e-4b3c-a1d9-7eb593a2cb31@11.11 (n.d.). Retrieved from https://www.sparknotes.com/economics/micro/supplydemand/equilibrium/section2/ www.sparknotes.com/economics/micro/supplydemand/equilibrium/section2/.Spaulding, William C. “Total And Marginal Utility.” Total and Marginal Utility, thismatter.com/economics/total-and-marginal-utility.htm.
