Demand and Supply (Edexcel A-Level Business): Flashcards
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Equilibrium price definition
Equilibrium price definition
Where quantity demanded equals quantity supplied
Alternative name for equilibrium price
Alternative name for equilibrium price
Market clearing price
Total Revenue formula
Total Revenue formula
Price × Quantity (P × Q)
Effect when demand increases (price & quantity)
Effect when demand increases (price & quantity)
Price rises, quantity rises
Effect when supply increases (price & quantity)
Effect when supply increases (price & quantity)
Price falls, quantity rises
Effect when demand decreases (price & quantity)
Effect when demand decreases (price & quantity)
Price falls, quantity falls
Effect when supply decreases (price & quantity)
Effect when supply decreases (price & quantity)
Price rises, quantity falls
Excess demand definition
Excess demand definition
Price below equilibrium; Qd > Qs (shortage)
Excess supply definition
Excess supply definition
Price above equilibrium; Qs > Qd (surplus)
Disequilibrium meaning
Disequilibrium meaning
When supply and demand are not equal