Market Equilibrium

Cards (9)

what is a market? 
where buyer and sellers interact to buy and sell goods and services
what is equilibrium price? 
The price at which the quantity demanded equals the quantity supplied.
what is equilibrium price also known as? 
market clearing price
what is surplus? 
where supply is higher than demand as the price is too high
what is shortage? 
where demand is higher than supply as the price is too low
what graph is this?
an equilibrium graph
what graph is this?
surplus graph
what graph is this?
shortage graph
what can changes in demand/supply cause? 
a change in the equilibrium