1.2.3 markets

Question 1

1.2.3

what is market equilibrium?
market clearing price

Answer 1

it is the point at which demand and supply are equal, i.e. where the supply and demand curve cross.

Question 2

1.2.3

any chance in demand or supply will lead to a _____?

Answer 2

any change in demand or supply will lead to a NEW EQUILIBRIUM PRICE

Question 3

1.2.3

what do markets forces do?

Answer 3

market forces are always pushing prices towards market equilibrium

Question 4

1.2.3

a change in price will lead to a _____?

Answer 4

a change in price will lead to a MOVEMENT ALONG THE SUPPLY OR DEMAND CURVE

Question 5

1.2.3

a change in any factor will lead to a ______?

Answer 5

a change in any factor will lead to a SHIFT IN THE DEMAND OR SUPPLY CURVE