1.2.3 : Market Equilibrium Flashcards
1
Q
What does market equilibrium mean?
A
Means a state of equality or balance between market demand and supply
2
Q
Hat does an outward shift of market demand do to the equilibrium price ?
A
An outward shift of market demand causes a rise in equilibrium price and an expansion of market supply
3
Q
What will an outward shift of market supply do to an equilibrium price ?
A
An outward shift of market supply will cause the equilibrium price to fall and an expansion of the market
