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Description
Flashcards by Jasmine Wells, updated more than 1 year ago
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Created by Jasmine Wells
over 8 years ago
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| Question | Answer |
| Define surplus | When there is a greater quantity of supply of products than demanded. |
| What does a surplus cause? | The forces of demand and supply causes the price of that product to decrease to maintain a market equilibrium. |
| Define shortage | Shortage is when there is a greater quantity of demand for a product than there is supplied. |
| What does a shortage of goods cause? | The forces of demand and supply will cause the price of that good to increase to maintain a market equilibrium. |
| Define Market Equilibrium. | When a market is in equilibrium, quantity demanded= quantity supplied. - Market equilibrium or market price is determined by where supply and demand curves intersect. |
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