Price determination Flashcards

1
Q

Excess demand

A

When the price of a good is less than the equilibrium price, and sothere are more consumers willing to buy the product than producers are willing to sell
Quantity demanded > supplied

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Excess supply

A

When the price of a good is above the equilibrium price so less consumers are willing to buy than producers want to sell
Quantity supplied > demanded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Market

A

Where buyers and sellers meet and exchange money/goods for other good/services - can take place in person, internet etc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly