Group items tagged

This article relates to equilibrium and price mechanism because it describes changes in impacts of the market. Stakes are growing, there are "intensified speculation about America's long-term stability" due to a downgrade in the country's credit rating, and an unstable state at the "fiscal cliff". These worries and a political impasse in Washington are some impacts that has threatened negative economic repercussions in the US, moving the market equilibrium. In response to changes in price, resources are allocated and re-allocated. However, profits are still able to be made making the equilibrium more stable without excess demand and supply, due to that the US has its popular culture and economic innovation, helping the country to retain attractive qualities for many foreigners.

I think this is a very serious matter, that could affect the world's over all economy if it goes on for a while. We can see that obviously a majority of the world's largest companies are american and based in america. If this effects any of those companies, the market they operate at will see a big change, both in the good way and the bad one.

This article illustrates how a increase in supply of copper shifts the equilibrium of the price and demand for copper.

This article illustrates how a increase in supply of copper shifts the equilibrium of the price and demand for copper.

The article talks aboutthe quantative easing the FED gave and how it may affect the markets. "As interest rates rise, so does the expected return. This, in turn, pushes down the price that investors are willing to pay for a dollar in earnings" this is the concept of equilibrium in a more financial point of view. It says that the steeper the field curve is the higher the interests will be and therefore the equilibrium rises.

The article's main topic is describing the reasons of not adapting supply of lawyers. Although the demand for their services is decreasing, their wages are still as during typical prosperity. The author states that the unwilling law milieu, It is an example of a supply curve which do not change in order to get equilibrium price. The reference to the game theory indicated in Johnson's essay which considers such stalemate as 'lose-lose situation'.

Please excuse if I am wrong because I am admittedly not completely sure if I am interpreting this right. I believe that this article tells us that Ireland's banks up to now were in no state of allocated efficiency because the equilibrium had to be manually shifted by the EU paying money to the irish banks. This however has changed now because they are leaving the bailout program which shows that they are trying to get onto their own feet again, and no longer need help from the EU. From this I can conclude that the Irish banks are at least moving towards a state of allocated efficiency again.

A great article talking about how the equilibrium of the oil market affects currencies, especially the dollar as barrels are mainly exchanged using dollars.

This article refers to the current price feud between two of America's largest mobile phone providers, T-Mobile and AT&T. Having earlier employed aggressive tactics to try to gain consumers from AT&T, T-Mobile recently suffered a set back as a result of a counter-move by AT&T, who offered monetary compensation for those consumers switching from T-Mobile. As a result of the apparent price war, Wall Street has become increasingly concerned by the prospect of a dramatic loss of profits in the industry, as both firms may eventually settle at the so called Nash Equilibrium point.

This article shows how demand for shares in the newly floated UK postal service Royal Mail has pushed the price up from 330p a share to 450p. This is the price in which demand is seen to be equal to supply, something the UK Government are being criticised for failing to notice as they believed 450p was a far to high price. The move itself if highly controversial and has been a hotly debated topic ever since it's proposal with many employees fearing that jobs will be lost.

I think this is really normal. Simply because private companies tend to have higher efficiency rates and therefore make more profits, this is the business part of the reason. Now if we consider the economical reason, I think that higher profits (deviants) will attract a lot more shareholders, this means higher demand. from the other side, shareholders will be willing to keep their shares as the company is making more and more profits, therefore less shares supply. So in short, more demand, less supply of shares could not lead to anything else except hiher prices and greater value of the company.

The article is about how the industry is slowly growing stronger in the Eurozone. The article mentions the huge surplus of capacity that persists compared to before the crisis over two years ago.

This article talks about how Ed Miliband wanted to cap the price on domestic fuel. His policy aimed at restricting how much people would have to spend on energy so as to improve their general purchasing power as well as reducing business costs. This affects the suppliers negatively as it will reduce their profits, however it might also increase consumer demand.