Market Equilibrium - Chapter 5
View linked note
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/7
Earn XP
Description and Tags
Vocabulary flashcards covering key concepts of market equilibrium, shortages/surpluses, price controls, and related tools from the notes.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No analytics yet
Send a link to your students to track their progress
8 Terms
Market equilibrium
The price-quantity combination at which the quantity demanded equals the quantity supplied; the intersection of the demand and supply curves.
Equilibrium price
The price at which quantity demanded equals quantity supplied (QD = QS).
Equilibrium quantity
The quantity demanded equals the quantity supplied at the equilibrium price.
Shortage
When quantity demanded exceeds quantity supplied (QD > QS) at the current price.
Surplus
When quantity supplied exceeds quantity demanded (QS > QD) at the current price.
Price ceiling
A government-imposed maximum price; a binding ceiling can create a shortage and artificial scarcity.
Price floor
A government-imposed minimum price; a binding floor can create a surplus and artificial excess supply.
Binding price control
A price control that prevents the market from reaching its natural equilibrium, leading to shortages or surpluses.
