market equilibrium Flashcards
1
Q
market equilibrium
A
occurs when the quantity demanded for a product is equal to the quantity supplied= no shortages
2
Q
market disequilibrium
A
occurs when the quantity demanded for a product is higher or lower than the quantity supplied.
3
Q
it is inefficient to have market disequilibrium as it has a—— and a ——
A
shortage (excess demand) ]
surplus (excess supply)
4
Q
equation for excess supply is
A
supply- demand
5
Q
equation for excess demand is
A
demand- supply
