Equilibrium Flashcards
1
Q
Government intervention
A
Where the government becomes involved in a situation in order to help deal with a problem
2
Q
Equilibrium price
A
Price at which supply and demand are equal
3
Q
Market clearing price
A
Price at which the amount supplied in a market matches exactly the amount demanded
4
Q
Total revenue
A
Amount of money generated from the sale of goods calculated by multiplying price by quantity
5
Q
Excess demand
A
Where demand is greater than supply and there are shortages in the market
6
Q
Excess supply
A
Where supply is greater than demand and there are unsold goods in the market
