Markets | Theme 1 Flashcards
1
Q
What does equilibrium mean in a market context?
A
Equilibrium means a state of quality or balance between market demand and market supply.
2
Q
What are points of disequilibrium?
A
Prices where demand and supply are out of balance are called points of disequilibrium.
3
Q
What is the point of equilibrium?
A
The point of equilibrium is known as the market clearing price where demand and supply meet.
4
Q
What happens to equilibrium when there is more supply and demand?
A
Change in equilibrium will shift to the right as there is more supply and more demand.
