Market Equilibrium (HSC SSCE Economics): Flashcards
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Practise the cards
10 cards from this deck
Market equilibrium
Market equilibrium
When quantity demanded equals quantity supplied
Price mechanism
Price mechanism
Process where supply and demand interact to determine price
Excess demand
Excess demand
When quantity demanded exceeds quantity supplied
Excess supply
Excess supply
When quantity supplied exceeds quantity demanded
Effect of demand increase on equilibrium
Effect of demand increase on equilibrium
Both price and quantity increase
Effect of demand decrease on equilibrium
Effect of demand decrease on equilibrium
Both price and quantity decrease
Effect of supply increase on equilibrium
Effect of supply increase on equilibrium
Price decreases, quantity increases
Effect of supply decrease on equilibrium
Effect of supply decrease on equilibrium
Price increases, quantity decreases
Where equilibrium point occurs on graph
Where equilibrium point occurs on graph
Where demand and supply curves intersect
Cause of equilibrium shift
Cause of equilibrium shift
Shifts in supply or demand curves