Ch. 4. Equilibrium Flashcards
1
Q
Market Economics
A
Each individual makes their own production and consumption decisions, buying and selling in markets
2
Q
Planned Economics
A
Centralized decisions are made about what is produced, how, by whom and who gets what
3
Q
Market
A
A market is any setting that brings together potential buyers and sellers
4
Q
Equilibrium
A
The point at which there is no tendency to change
Quantity Demanded = Quantity Supplied
5
Q
Equilibrium Price
A
Optimal price in a market
6
Q
Equilibrium Quantity
A
Optimal quantity in a market
7
Q
Shortage
A
When the quantity demanded exceeds the quantity supplied
8
Q
Surplus
A
When the quantity demanded is less than quantity supplied
