1.3.3 Price Determination Flashcards
1
Q
What is equilibrium price
A
When supply meets demand
2
Q
What is the market price clearing
A
Price has no tendency to change
3
Q
What is a shortage in the market
A
When demand is now greater than supply ( excess demand)
4
Q
What does it mean by surplus
A
When there is more supplied compared to demanded ( excess supply)
