Market equilibrium

Front

What is the Equilibrium Price?

Back

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.

Front

What is the Equilibrium Quantity?

Back

70

Front

When quantity supplied is smaller than quantity demanded, you have a ____________.

Back

shortage

Front

Point at which supply and demand curve intersect each other

Back

equilibrium

Front

What is the equilibrium quantity in this graph? Options: $1.50, $1.00, 600, 800

Back

600

Front

A situation in which the quantity supplied is greater than the quantity demanded is

Back

a surplus

Front

Price is currently above equilibrium. This will create excess__________. We would expect price to ___________.

Back

supply; decrease

Front

"holding all else equal, when the price of a good rises, suppliers increase their quantity supplied for that good"

Back

law of supply

Front

Any price where quantity demanded is not equal to the quantity supplied is known as disequilibrium.

Back

true

Front

What is the state in which market supply and demand balance each other, and as a result prices become stable?

Back

Market Equilibrium