1.2.6 Price determination Flashcards
1
Q
Disequilibrium
A
prices where demand and supply are out of balance.
There is either:
Excess demand (market prices too low)
or
Excess supply (market prices too high)
2
Q
Equilibrium
A
A state of equality or balance between market demand and supply
3
Q
Excess demand/Shortage
A
Where quantity demanded is greater than quantity supplied
(market prices too low)
4
Q
Excess supply
A
Where quantity supplied is greater than quantity demanded
(market prices too high)
5
Q
Health rationing
A
Occurs when the demand for healthcare services is greater than the available resources
Leading to waiting list and delays for health treatment
