2.5 The interaction of markets Flashcards
1
Q
A market
A
A set of arrangements that allows transactions to take place
2
Q
Market equilibrium
A
A situation that occurs in a market where the price is such that the quantity that consumers wish to buy is exactly balanced by the quantity that firms wish to supply
3
Q
Excess supply
A
a situation in which the quantity that firms are willing and able to supply exceeds the quantity that consumers wish to demand at the going price
4
Q
Excess demand
A
A situation in which athe quantity that consumers wish to demand at the going price exceeds the quantity that firms are willing and able to supply
