Explore BrainMass
Share

evaluating a market's equilibrium

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

In economics, there are three common methods for finding the equilibrium point in any given market: mathematically, graphically, and by inspection. With given information, you may not be able to find the equilibrium price and quantity only one way, so you must be familiar with all three methods in order to be equipped with the tools necessary for evaluating a market's equilibrium.

© BrainMass Inc. brainmass.com October 24, 2018, 6:51 pm ad1c9bdddf
https://brainmass.com/economics/equilibrium/50770

Solution Preview

In order to find the equilibrium point in a market, you must have certain information which will enable you to identify the characteristics of that market. In basic micro and macroeconomics, in order to identify the equilibrium, your instructor will provide you with context clues which you must learn to decipher.

The three methods for finding the equilibrium point are:
1. Mathematically/algebraically;
2. Graphically;
3. By inspection/table of numbers.

Using the market for ice cream as an example, ...

Solution Summary

Methods of Finding Equilibrium in a Market are determined.

$2.19
See Also This Related BrainMass Solution

Evaluating Performance

Having previously identified the location of its greenfield investment, Acme, a multi-billion dollar public MNE that is incorporated in the U.S., must next obtain financing for its proposed overseas production facility. It has been estimated that the acquisition will cost $500M and all funds will be secured in the U.S. Your job is to explain to this committee some of the financial aspects of this acquisition.

Deliverable: At the next steering committee meeting, you will provide a detailed presentation of the characteristics of the various financing alternatives, including the advantages and disadvantages of each. Your report should conclude with a recommendation of which alternative (or combination of alternatives) should be used to finance the overseas investment.

View Full Posting Details