1.2.3 Markets and equilibrium Flashcards
1
Q
What are commodity markets?
1
A
- Markets for undifferentiated products (raw mats e.g. gold)
2
Q
What is equilibrium?
1
A
- Situation in market where supply and demand are balanced, price = stable
3
Q
What happens if demand is higher than supply?
1
A
- ^Price of product
4
Q
What happens if supply is higher than demand?
1
A
- > Price of product, ensure all supply is sold
5
Q
If a demand curve moves to the right (rises) what will happen to the price?
1
A
- Rises
6
Q
If a demand curve moves to the left (falls) what will happen to the price?
1
A
- Fall
7
Q
If a supply curve moves to the left (falls) what will happen to the price?
1
A
- Rise
8
Q
If a supply curve moves to the right (rises) what will happen to the price?
1
A
- Falls
9
Q
If supply is down and demand is up, what happens to the price?
1
A
- Price up sharply
10
Q
If demand stays the same and supply is up, what happens to the price?
1
A
- Price down
11
Q
If demand is down and supply is the same, what happens to the price?
1
A
- Price down
12
Q
If demand is down and supply is up, what happens to the price?
1
A
- Price down sharply
