1.1.3 Demand-supply-and-market equilibrium Flashcards
1
Q
Demand
A
the amount of a good that consumers are willing and able to buy at a given price.
2
Q
Complementary goods
A
Demand for one type of good will affect demand for another
3
Q
Substitute goods
A
The impact of a change in price will cause consumers to switch products to an alternative good
4
Q
Supply
A
the amount of a product which suppliers will offer to the market at a given price
5
Q
Excess demand
A
a situation where the market price is below the equilibrium price, thus creating a shortage in the market
6
Q
Excess supply
A
a situation where the market price is above the equilibrium price, thus creating a surplus in the market
