Unit 1d
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/9
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai | Chat |
|---|
No analytics yet
Send a link to your students to track their progress
10 Terms
Market
A place or situation where buyers and sellers exchange goods and services
Market demand
The horizontal sum of all individual demand curves/schedules at each price
Market supply
The horizontal sum of all individual supply curves/schedules at each price
Equilibrium
The price at which quantity demanded equals quantity supplied
Disequilibrium
The market is not in equilibrium (surplus or shortage exists)
Surplus
Excess supply – quantity supplied is greater than quantity demanded (occurs above equilibrium)
Shortage
Excess demand – quantity demanded is greater than quantity supplied (occurs below equilibrium)
How surplus is removed
Price falls → QD rises and QS falls until equilibrium is restored
How shortage is removed
Price rises → QD falls and QS rises until equilibrium is restored