1.2.3 the Market Flashcards
1
Q
definition equilibrium
A
point where there is a balance between supply and demand
this makes a price stable
2
Q
equilibrium graph
A
\ /
—x
/ l \
3
Q
what will a rise of demand do
A
leaves a shortage of supply at current price so that price will rise and the equilibrium quantity will increasw
4
Q
what will a fall of demand do
A
leaves a surplus of supply at current price so that price will fall and the equilibrium quantity will decrease
5
Q
what will a rise of supply do
A
leaves a surplus of supply at current price so that price will fall and the equilibrium quantity will decrease
6
Q
what will a fall of supply do
A
leaves a shortage of supply at current price so that price will rise and the equilibrium quantity will increasw
