Markets Flashcards
1
Q
Define the term supply.
A
The amount of product or service that a business is willing and able to provide at a given price.
2
Q
Define the term demand.
A
The amount of product or service that customers are willing and able to buy at a given price.
3
Q
Explain what the market clearing price is.
A
The interaction of buyers and sellers creates an equilibrium price where demand and supply is equal.
4
Q
Explain what excess supply is.
A
When supply exceeds demand.
5
Q
Explain what excess demand is.
A
When demand exceeds supply.
