MARKET: ADJUSTMENT TOWARDS BALANCE

In this video we are going to analyze the adjustment process that leads perfectly competitive markets to tend towards equilibrium.
When this happens, buyers and sellers reach an agreement on the price and quantity of the product to be transacted.
Equilibrium in the markets, as we will demonstrate, is inertial, that is, if any disturbance takes place that moves it away from it, forces are automatically generated tending to restore it.
In this process, the price plays a determining role, since it acts as a signal and guides the decisions of consumers and producers, guaranteeing equilibrium in the market.
Before starting, it would be convenient to remember that in our economic system, the market plays a fundamental role, since the basic decisions that give an answer to what to produce? How to produce it? And for whom? they are determined by the market. This is so to such an extent that our economic system is known as a “market economy”.
A market can be defined as a not necessarily physical place (nowadays in many markets this occurs when the use of the internet in economic transactions becomes widespread), where buyers and sellers converge on a specific good or service.
Therefore, if there is demand and supply for a product, there will be a market.
The type of market that is considered ideal or paradigmatic is the perfect competition market, where a multitude of buyers and sellers transact a certain product.
It is in these types of markets where we are going to analyze the adjustment process that inexorably leads to equilibrium.
Yes or yes, as we will demonstrate. Every market will naturally tend to equilibrium, which is the best possible situation. Well, when it is achieved, applicants and bidders will be able to agree, and therefore the greatest social welfare will be achieved.

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Buen vídeo! 👏👏