Question

write more than 800 words please type it
Essay Topic: COMPARE AND CONTRAST THE
MARKET DYNAMICS FOR PRODUCED GOODS
(AND SERVICES) WITH THE SUPPLY AND
DEMAND MARKET CONDITIONS FOR LABOR.
In order to help launch your mini essay, here are
some things you might consider:

--Identify and summarize the similar dynamics of
market forces presented. That means to say, teach
me step-by-step how the laws of supply and
demand combine with basic assumptions about
shortages and surpluses to lead to a concept of
market equilibrium.
--How are supply for produced goods determined
in a different way from the supply of labor.
Additionally, how is the demand for produced
goods determined in a different way from the
demand for labor.

--Finally, comment whether one model is different
from the other. In other words, do you feel a
comfortable with the reliability of price
determination of produced goods as much as you
feel about market wage rates.

Answer 1

Equilibrium in an economy is the center point around which the all the forces of a market revolve. It is this equilibrium that all the factors of production pursue and characterize themselves in accordance to the requirements in the market to attain the equilibrium. The forces of demand and supply are most critical factors in this regard. The demand and supply in their proportionate factors contribute to the attainment of the general equilibrium in the market. In a market economy, it is the demand from the consumers that primarily drives the producers to produce in accordance to the demand factor. When the supply from the producers meet the adequate demand in the market, it is then, the consumers attain their maximized satisfaction or value, and the producers attain their maximized revenue. This situation in the market, where there is perfect composition of demand and supply forces is referred to as the market equilibrium.

                               In certain scenarios, the producers supply is constrained by many factors of production, thereby resulting in to a specific amount of the supply of a particular product. If the supply of the product is less, owing to its scarce factors of production, then the producers will require lesser laborers to produce the limited supply of the product. When there is limited supply of the product in the market, the consumers are left demanding for the product, which leads to an increase in the demand for the product, thereby resulting in an increased price for the product. Similarly, if the supply of the product is more, owing to it’s highly and easily factors of production, then the producers will require higher number of laborers to produce the larger supply of the product. When there is unlimited or high supply of the product in the market, the consumers are left with lesser demand for the product, which leads to a decrease in the demand for the product, thereby resulting in a decreased price for the product. In this way, supply effects the demand in the market and the availability of labor force in the market.

                         The supply price determinant of market equilibrium is usually not the best possible outcome for the market, as then the prices of the product are vulnerable to the supply force. Moreover, the wage of the labor is also directly impacted by the vulnerability of the supply price factors. In this sphere, the equilibrium which is the result of the demand factor is well accepted to be the best form of equilibrium, as in this type of market determinant, all the factors of production are optimally utilized. Here, the consumers are satisfied to their maximum and the producers also gain optimal profit.