1.2.3 The market

Question 1

when is a market in equilbrium?

Answer 1

when there is a balance between demand and supply

Question 2

equilibrium in markets

Answer 2

a state of balance between market demand and market supply
(no excess)

Question 3

what happens to the equilibrium if demand increases…

Answer 3

a rise in equilibrium price and an expansion of market supply is caused

Question 4

what happens to the equilibrium is supply increases….

Answer 4

a fall in equilibrium price and an expansion of market demand occurs

Question 5

what happens to the equilibrium if demand decreases…

Answer 5

there is a lower equilibrium price and quantity needed

Question 6

what happens to the equilibrium if supply decreases…

Answer 6

there is a higher equilibrium price and a lower equilibrium quantity

Question 7

market demand

Answer 7

the total quantity demanded for a product in a market by all customers

Question 8

market supply

Answer 8

the total quantity of a product supplied to a market by suppliers

Question 9

what is a market?

Answer 9

where buyers and sellers meet and interact with the aim of purchasing and selling goods/ services

Question 10

how is market price determined?

Answer 10

by the forces of supply and demand