The Price Mechanism Flashcards
1
Q
What is the Equilibrium Price?
A
Once supply and demand have adjusted.
2
Q
What is a Price Mechanism?
A
Using the force of supply and demand to determine the price of goods.
3
Q
What will affect both supply and demand?
A
Price of the Product.
4
Q
What will affect the price?
A
Demand and Supply.
5
Q
What is Excess Supply?
A
When the price is high, and quantity is low.
6
Q
What is Excess Demand?
A
When price is low and quantity is high.
