Market Equilibration Paper

Takes time and money and comes with great risk. If the demand for ammunition does not stay at the level it is at now and a supplier expands; they could start losing money as soon as the supply starts going up and demand starts falling. The tragedy triggered what is called the efficient market theory where the stock market for ammunition reacted very quickly in a positive direction. The price of ammunition ticks rose quickly; it is still more today than it was before December 14.

Not only is the stock price up, but also the price of ammunition; with the demand still high and supply still low the price of ammunition has stayed steady since the tragedy. Conclusion In conclusion, the demand of ammunition rose quickly because of a tragedy that occurred and has stayed in demand due to the limited supply. The shortage of ammunition also created a spike in ammunition price.