equilibrium Flashcards
1
Q
define equilibrium price
A
the point at which quantity demanded and quantity supplied is equal
2
Q
define market clearing price
A
price at which the amount supplied matches the exact amount demanded
3
Q
define excess supply
A
where quantity supplied of a good or service exceeds quantity demanded, resulting in surplus and lower prices
4
Q
define excess demand
A
where quantity demanded of a good or service exceeds supply, resulting in shortages and higher prices
