2.5 The interaction of markets Flashcards
1
Q
Derived demand
A
The demand for one good is linked to the demand for a related good
2
Q
Excess demand
A
When a price is set too low so demand is greater than supply
3
Q
Excess supply
A
When price is set too high so supply is greater than demand
4
Q
Market
A
Where demand and supply interact; the collection of many sub-markets
