Price Determination under a Freely Operating Market System Essay

Price Determination under a Freely Operating Market System - Essay Example This helps in the determination of the type of goods to be produced and the quantity of that particular that is required to be produced. Now, whether a consumer of the goods would buy it or not helps in the determination of the quantity of a particular type of goods to be produced (Haber, 2000, p.10). The recent fall in prices of residential properties in UK has been explained using the market theory in this study. Determination of Price in a Market A market can be considered to be composed of two of its fundamental components. They are: supply and demand. The price of a commodity is determined through the interaction of these two market forces, i.e. supply and demand of the commodity in the market. As discussed earlier market is a place where exchange of commodities takes place between the suppliers and buyers. However this type of transaction can take place only when both the sellers and buyers have agreed upon a price for the particular commodity that is involved in the transactio n. Supply can be defined as the quantity of goods or services a business firm has in offer for sale in the market and it is offered at a pre-determined price set by the business firm. On the other hand, demand is the quantity of goods or services which the consumers are willing to buy at a specified price (Goldberg, 2000, p.72). In a freely operating market system, the sellers and buyers are free to carry out the transaction of goods and services at a mutually agreed price and they are not intervened by any other individuals or entities. Thus in a free market the prices of the goods or services are freely set and are based on the supply and demand of the transacted goods or services. Some of the key determinants of a free market economy are: a) Prices determined freely, b) Rights and incentives associated with the property, c) Freedom of trading at home or abroad, d) Government’s role, and e) the private organisation’s role (Taylor, 2006, p.14-15). Equilibrium Price Fi gure-1 shown below represents two different curves which are the supply and demand curves. Both of these curves are found to intersect at a point which is known as the point of equilibrium. It is actually the market’s equilibrium (Government of Alberta: Agriculture and Rural Development, 2012). The corresponding quantity and price of products at the point of equilibrium are known as equilibrium quantity and the equilibrium price. It is the actions taken by the sellers and the buyers which help in driving the market towards this equilibrium price or in other words the equilibrium of the supply and demand (Mankiw, 2011, p.77). Figure-1 Equilibrium Price Supply Equilibrium Equilibrium Price Demand Equilibrium Quantity Source: (Author’s Creation) Residential Property Prices in UK It has been observed that the prices of residential properties in United Kingdom (UK) have fallen considerably over the past few years. This observed phenomenon can be explained through the market theory involving the two market components, namely, supply and demand of the residential properties in UK. The world economy along with UK experienced a housing boom

Sacrificing Gaddafi Speech or Presentation Example | Topics and Well Written Essays - 1500 words

Sacrificing Gaddafi - Speech or Presentation Example One would require a strong motive to do sacrifice. Sacrifice can be positive too if it brings positive benefits as a result. Gaddafi had been oppressing and subjugating the Libyan people, We can no longer live under this evil subjugation, sacrificing Gaddafi would bring positive results. Libya is not like Tunisia or the Egypt it is place which is completely different. In case of distraction it would just split in to several other states. These were the words of son of Gaddafi on the Libya TV on Sunday. Of course he is very right as Libya is neither Egypt nor it is Tunisia. It is a country that is over 600,000 sq. miles and is populated by less than even 7 million. Since, the 1969, it has been the victim of single leadership, a man who has treated it mercilessly by showing cruelty to anyone who speaks against him or the revolution or the regime he was governing. It is a country that is built over the importance of tribal unity though despite the largest oil reserves in Africa, it cont inues to permit two third of the citizens living under poverty lines. It is a unique country that cannot boast much of its positive bilateral relations with the west or the Europe, as it has only recently made amendments in its relations with the neighbors across the Mediterranean after many years of US and UN imposed sanctions. (Gaddafi: Africa's king of kings) After the cold in 2004, the Europe ties then developed for better. As could be seen Libya became the third biggest oil supplier to European countries, having in the recent years surpassing Saudi Arabia even. The proximity to Europe, relative lack of foreign investment, unexplored terrain gave Libya a deep value a worth of gem equivalence especially for the oil dependent economies of west. (Gaddafi's personal website) The fact that the leader may publicly hang the dissident students was of no greater concern as long as the philosophy of intolerance had extended to, adequately suppressed, the supposed "threat" of Islamism. Sti ll the recent events have just forced world leaders to just re- examine the relationship with the distorted regime. Accounts of the unprovoked sniper attacks on the peaceful demonstrators, use of the violent foreign mercenaries as means of the crowd control, live ammunition being shot in to crowds of protesters, along with the media black-out that tried (un-successfully) to prevent world from finding out the truth This has brought about fresh focus and attention to plight of the Libyan people along with the reaction of their in-humane leader.(Freedom 2011) As he had addressed the nation, Gaddafi’s feebly masked threats were then received angrily by the protesters in the streets. His claims in regard to the celebrations of people of Darnah, Benghazi and al-Bayda were brought about by drunk and drugged youngster led to the furious chanting plus jeering against the Gaddafi and his son. Gaddafi’s warnings of possibility of civil war and separatism evoked slogans emphasizin g the unity of Libyan people and their intention to support one another till they achieved victory.( A new flag flies in the east) The strengthened protest is one of the case in point. Having been silent for a specific period or the beginning periods the Libyan people then made it to the streets in much of the increasing numbers their final destination became the presidential house. However, the difficulties have gone beyond this. Reports of helicopters bombing protestors as well as forcing them out of city centre apartment blocks in order to make room for snipers are also confirmed by those very people who were on the ground. If one watches from their house they could find Saif’