The interaction of markets (OCR A-Level Economics): Flashcards
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Practise the cards
13 cards from this deck
Ceteris paribus meaning
Ceteris paribus meaning
All other things being equal
Economic efficiency
Economic efficiency
Optimal use of resources to maximise overall welfare or output
Pareto efficiency
Pareto efficiency
No one can be better off without making someone else worse off
Demand curve slope direction
Demand curve slope direction
Downwards from left to right
Supply curve slope direction
Supply curve slope direction
Upwards from left to right
Market equilibrium point
Market equilibrium point
Where demand and supply curves intersect
Equilibrium condition
Equilibrium condition
When does surplus (excess supply) occur?
When does surplus (excess supply) occur?
Price is above equilibrium
When does shortage (excess demand) occur?
When does shortage (excess demand) occur?
Price is below equilibrium
Effect of surplus on price
Effect of surplus on price
Downward pressure on price
Effect of shortage on price
Effect of shortage on price
Upward pressure on price
Demand curve price-quantity relationship
Demand curve price-quantity relationship
Inverse relationship
Supply curve price-quantity relationship
Supply curve price-quantity relationship
Direct relationship