LS 10- Price Determination Flashcards
1
Q
What is excess demand?
A
When there is greater demand than supply
Link: https://www.economicshelp.org/microessays/equilibrium/market-equilibrium/
2
Q
What is excess supply?
A
When there is greater supply than demand
Link: https://www.economicshelp.org/microessays/equilibrium/market-equilibrium/
3
Q
What is market equilibrium?
A
The price at which supply meets demand
Link: https://www.economicshelp.org/microessays/equilibrium/market-equilibrium/
4
Q
Why is market equilibrium known as the market clearing price?
A
Because the supply is met by the exact demand required to clear all the products
