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The time now is 10/28/08 - 09:23

Equilibrium price and commodities markets


RealCool.BIZ Forum Index -> Investments & Trading -> Commodities

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ax
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Joined: 31 Jul 2007
Posts: 3



PostPosted: 06/02/08 - 07:06    Post subject: Reply with quote

The free market is pretty interesting, even from a scientific point of view! While it all seems so chaotic, there are scientific and mathematical ways of calculating almost all aspects of the market. How about the equilibrium price? What is your opinion on how this works within commodity markets? Thanks for your reactions.
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maxy
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Joined: 07 Jan 2008
Posts: 3



PostPosted: 07/01/08 - 22:12    Post subject: Reply with quote

This could be the aim of every manufacturer, as it represents the perfect balance within the market. It creates an absolutely stable situation. If there were fewer products on the market, the price would then shoot up. However, it would also encourage competition. Thus the balance may be the most favorable situation.
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