1.2.6 Price Determinism Flashcards
1
Q
What is the equilibrium point?
A
The equilibrium point refers to the point at which there are no more forces bringing about change and supply is equal to demand.
2
Q
What is the equilibrium also known as?
A
The market clearing price.
3
Q
Why is there sometimes excess demand?
A
There is excess demand when the price of a good is set below equilibrium and as a result there are more people demanding the product than there is suppliers supplying it.
4
Q
A
