Markets and Equilibrium 1.2.3 Flashcards
1
Q
when is a market said to be at equilibrium?
A
when there is a balance between demand and supply
2
Q
why does the equilibrium point change
A
as demand and supply try to reach a point of balance
3
Q
what is pe known as
A
the market clearing price
4
Q
what happens to market equilibrium price and quantity when demand increases
A
they will increase
5
Q
what happens to market equilibrium price and quantity when supply increases
A
price will decrease, quantity will increase
