Equilibrium Flashcards
1
Q
equilibrium
A
occurs when demand is equal to supply, the market clears and there is no tendency for change
2
Q
disequilibrium
A
occurs when the demand is not equal to supply, the market does not clear and there is a tendency for change
3
Q
excess supply
A
when supply exceeds demand, resulting in a surplus
4
Q
excess demand
A
when demand exceeds supply, resulting in a shortage
