LS10 Flashcards
Excess Demand
When the quantity demanded exceeds the quantity supplied at a given time
Excess Supply
When the quantity supplied exceeds the quantity demanded
Equilibrium Price
When the supply meets the demand
Equilibrium Price
When the supply meets the demand
Supply and Demand diagram, X and Y
X axis - The output measured in units. Output(units)
Y axis - The price level measured in £ or $. Price Level (£)
Supply
The quantity of a good or service that firms are willing to produce at a given time period
Relationship between Price and Supply
As the price of a good increases, quantity supplied increases
Relationship between Price and Demand
As the price of a good or service decreases, the quantity demanded increases
Relationship between Supply and Demand
As the price level increases, Quantity supplied increases and Quantity Demanded decreases
Relationship between Supply and Demand
As the price level increases, Quantity supplied increases and Quantity Demanded decreases
Bartering
Trading of goods between countries with no money involved.
Inefficient process because it takes lots of time and effort finding countries to barter with
Most efficient method of training
Money
