1.2.3 equilibrium & supply/demand graphs Flashcards
what does equilibrium mean
a state of equality or balance between market supply and demand
what is it called when price and demand are not balanced
disequilibrium
what factors leads to a shift in supply
P RODUCTION I NDIRECT TAX N NUMBER OF FIRMS ENTERING THE MARKET T ECHNOLOGY S UBSTIDIES W EATHER C OST OF PRODUCTION
what factors leads to a shift in demand
PASIFIC
what leads to a fall in equilibrium price
an outward shift of market supply
what leads to a rise in equilibrium price
an outward shift of market demand
if demand increases will the equilibrium price be higher or lower
higher
if demand increases will the equilibrium quantity be higher or lower
higher
if demand decreases will the equilibrium price be higher or lower
lower
if demand increases will the equilibrium quantity be higher or lower
lower
if supply increases will the equilibrium price be higher or lower
lower
if supply increases will the equilibrium quantity be higher or lower
higher
if supply decreases will the equilibrium price be higher or lower
higher
if supply decreases will the equilibrium quantity be higher or lower
lower
what would happen if the equilibrium price was to increase
excess supply
