Market Equilibrium Process
Running Head: MARKET EQUILIBRATING PROCESS PAPER Market Equilibrating Process Paper Lazaro Alfonso ECO 561 University of Phoenix Prof. Gustavo E. Morles October 20, 2009 Market Equilibrating Process Paper What better fact than the writer’s experience as an owner of a vacation timeshare in Disney Vacation Club (DVC) and previous annual pass holder for Walt Disney World theme parks. When one becomes a DVC member, one buys a real state interest in a DVCResort. In addition, one gets a whole world of vacation value.
Because not only one can enjoy the comforts and benefits of all DVC Resorts, one can also vacation at other destinations around the world, including an African safari or the beaches in Mexico. As a member, one receives an annual allotment of vacation points to use toward each vacation the member takes. The member receives the same number of points every year, but he or she uses it is up to him or her. Each accommodation has a vacation point value that is determined by the type of the room and timing of the vacation stay.
One uses more vacation points for weekends and peak seasons, such as summer and fewer during weekdays and less busy times of the year, such as fall. It is with the information provided above that market equilibrium, supply and demand play a role in the author’s experiences. When the author did not have children, the author was able to take several vacations throughout the year. The author was able to accommodate his time off during value seasons where it would take less point for his accommodation.
Another example that relates would be the ability to purchase annual theme park passes. Before the childrenwere born, the author was an annual pass holder. Once the childrenwere born, it became more difficult to afford them as expenses rose. It is also important to note that annual theme park passes prices have gone up throughout the year. As the author concludes, it is noted that the higher the demand for accommodations, the higher the number of points required for the accommodations.
The same can be said when there is less demand for accommodations. The lower the demand for accommodations, the less number of points required for accommodations. It is also important to note that circumstances in a member’s live such as preference and taste can also play a role in the vacation point value. Reference McConnell, C. R. , Brue, S. L. , & Flynn, S. M. (2009) Economics: Principles, problems, and policies (18th ed. ). New York: McGraw-Hill/Irwin.