Equilibrium

Question 1

When does excess demand occur

Answer 1

demand>supply at any given price

Question 2

how can we get from excess demand to equilibrium

Answer 2

increase prices, (Q demanded will decrease)

Question 3

when does excess supply occur

Answer 3

supply>demand at any given price

Question 4

how can we get from excess demand to equilibrium

Answer 4

lower prices to attract more customer

Question 5

when are changes in equilibrium caued

Answer 5

when there is a shift in the curves

Question 6

what is equilibrium

Answer 6

the price where the quantity demanded is the same as the quantity supplied. There is no shortage or surplus

Question 7

what is the opposite of equilibrium

Answer 7

disequilibrium

Question 8

what is equilibrium quantity

Answer 8

the quantity bought and sold at equilibrium price

Question 9

what is surplus

Answer 9

when quantity supplied > quantity demanded

Question 10

what is shortage

Answer 10

when quantity demanded> quantity supplied

Question 11

what is the law of supply and demand

Answer 11

claims that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance