Market Equilibrium (Junior Cert Business Studies): Flashcards
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Practise the cards
13 cards from this deck
Market equilibrium
Market equilibrium
When quantity demanded equals quantity supplied
Equilibrium price
Equilibrium price
Price where sellers supply & buyers purchase
Equilibrium quantity
Equilibrium quantity
Amount bought & sold when market is in equilibrium
Point where supply & demand curves intersect
Point where supply & demand curves intersect
Equilibrium point
Shortage/surplus at equilibrium
Shortage/surplus at equilibrium
Neither - no shortage or surplus
Price mechanism
Price mechanism
How markets naturally move towards equilibrium
Price effect when supply increases (demand same)
Price effect when supply increases (demand same)
Prices fall
Price effect when demand increases (supply same)
Price effect when demand increases (supply same)
Prices rise
Price effect when supply decreases (demand same)
Price effect when supply decreases (demand same)
Prices rise
Excess demand (shortage)
Excess demand (shortage)
When demand is greater than supply
Effect of excess demand on prices
Effect of excess demand on prices
Upward pressure on prices
Excess supply (surplus)
Excess supply (surplus)
When supply is greater than demand
Effect of excess supply on prices
Effect of excess supply on prices
Downward pressure on prices