Excess And Shortage Flashcards
1
Q
Excess
A
Excess is also know as surpless
When there is excess supply to get back to equilibrium the suppliers will decrease the price to get rid of excess
2
Q
Shortage / excess demand
A
This is where there is little demand.
To get back to equilibrium price will be increased to get to a place where everyone is happy
3
Q
Excess
A
Excess is where the price is set too high so excess supply is created
4
Q
Excess demand
A
Excess demand is where the round is set below equilibrium price
