Market equilibrium/ excess demand/ excess supply

What is the definition of market equilibrium?

A situation in which the quantity of a good or service supplied by producers equals the quantity demanded by consumers

What 2 forces are in balance and what does this lead to?

Supply and demand leading to stability in prices and quantities exchanged in the market

On a graph how is market equilibrium shown?

Supply curve intersects with the demand curve

What does excess demand result in?

A shortage of products

When does excess supply occur?

When supply is greater than demand

What is equilibrium?

A state of equality between demand and supply

Without a shift of what 2 things will there be no change in market price?

Demand and Supply

What is market demand?

The sum of individual demand for a product from buyers in the market.

What is individual demand?

The price that a consumer is willing and able to pay for a good or service in each time period

What is market supply?

Sums the supply of all individual producers in a market

What is the definition of supply?

The quantity of a good or service that a producers is willing and able to supply onto the market at a given price in each time period