Unit 6 - Markets Flashcards
1
Q
Def: Equilibrium price / market clearing price
A
The price where supply and demand are equal
2
Q
Def: excess demand
A
Demand is greater than supply at a given price so there are shortages in the market
3
Q
Def: excess supply
A
Supply is greater than demand so there are unsold goods in the market
4
Q
Def: total revenue / total expenditures
A
Amount of revenue generated from the sales of goods in a given period of time
5
Q
Equation for total revenue
A
TR= PRICE X QUANTITY
