Economics refers to the study of how human beings interact in a resources market where scarcity drives people to interact exchange resources and make decisions on the goods and services to use. An economic course promotes the understanding of how a market operates, different players in the markets and the responsibility of the government as a market stakeholder and regulator. An economic course creates a better perspective and understanding of how different buyers and sellers interact and the basis of their decisions in the market.
Reflection on an economics course
This economics course has created a better picture of the operations and characteristics of a market system. From the course, it can be identified that a market system is made of interdependent stakeholders who come together to trade. The direct market players are the buyers, sellers, producers, and consumers whereas the indirect participants include the government, labor unions, and market and product regulators. It is through the interaction of all the stakeholders that the characteristics of the market. However, the buyers play a significant role in the market system although a market system cannot exist without any of the stakeholder's participation.
Demand, supply, and market equilibrium
Demand refers to the quantity of products that the consumers are willing and able to buy at a certain market price whereas supply refers to the quantity of goods that the producers are willing and able to supply the market at a specific market price. A market equilibrium refers to a point where the quantity demanded, and the quantity supplied in the market are equal. It is important for the buyers, sellers, and producers to monitor the market demand, supply, and market equilibrium because it affects the products prices and also can affect the level of demand and quantity supplied.
A market failure is a situation when the goods and services provided in the market are not enough for the existing demand. Market failures include negative externalities which result in negative implications for the environment and lack of sustainability of the production of goods and services. Information failures result in market failure because there is the need for perfect information in the market regarding the goods and services which aim at creating awareness to the buyers on the product capabilities in the market. From this economic course, I have identified that it is important for the producers to manage the market externalities to facilitate the sustainability of the market. Lack of competition in the market is amongst the many market failures because it denies the consumers variety of choice and can result in exploitation of the consumers through exorbitant prices and substandard products.
The cost of product and market competition
The cost of production in a market determines the market price of different products. Producers strive to reduce the cost of production to make goods and services easily available and affordable and also helps the producers to maximize profits. Market competition increases the value of goods and also increases a variety for the consumers. A healthy market competition ensures that the consumers are not exploited by the consumers.
In conclusion, this course has increased knowledge and awareness of different market constructs and how different stakeholders interact to create a functional market. Information is very important to the sustainability of an effective and working market. The sustainability of the market depends on the ability of the producers to deal with externalities that lead to monopolies and exploitation of the consumers. Perfect information availability regarding the products, buyers, and sellers is fundamental in the creation of a perfect competition market.
If you are the original author of this essay and no longer wish to have it published on the customtermpaperwriting.org website, please click below to request its removal: