Market Equalibrium (5) Flashcards
1
Q
Define a Free Market
A
Any place where buyers meets suppliers to exchange goods/services free from government intervention
2
Q
Where is Equalibrium?
A
Where Demand=Supply
(Allocative Efficiency)
3
Q
Where is Disequalibrium?
A
Where Demand doesn’t equal Supply
4
Q
Whats Happens when there’s Excess Demand and Supply?
A
Excess Demand….. PRICES RISE
Excess Supply…….. PRICES FALL
