2.5-2.6 Price Determination/Changes Flashcards
1
Q
Define Market Equilibrium Price
A
The price at which the demand and supply curves in a given market meet
2
Q
Define Market Disequilibrium Price
A
The price at which market demand and supply curves do not meet
3
Q
What is Surplus?
A
Excess Supply
4
Q
What is Shortage
A
Short of Supply
5
Q
When is their Surplus?
A
When the price is above the equilibrium price, a surplus is experienced
6
Q
When is their Shortage?
A
When the price is below the equilibrium price, a shortage is experienced
