Ch. 4 Flashcards
1
Q
equilibrium
A
the point at which there is no tendency for change. A market is in equilibrium when the quantity supplied equals the quantity demanded.
2
Q
equilibrium price
A
The price at which the market is in equilibrium
3
Q
equilibrium quantity
A
The quantity demanded and supplied in equilibrium
4
Q
market
A
A setting bringing together potential buyers and sellers
5
Q
market economies
A
Each individual makes their own production and consumption decisions, buying and selling in markets
6
Q
planned economies
A
Centralized decisions are made about what is produced, how, by whom, and who gets what
7
Q
shortage
A
When quantity demanded exceeds quantity supplied
8
Q
surplus
A
When the quantity demanded is less than the quantity supplied
