7- Price determination Flashcards
1
Q
Where is the equillibrium price and quantity?
A
Where demand=supply.
2
Q
What is the market clearing price?
A
- Where demand=supply.
- All products supplied to the market are bought.
3
Q
What does excess demand mean for the market?
A
There is a shortage.
4
Q
What does excess supply mean for the market?
A
There is a glut.
