1.2.3 market equilibrium Flashcards
(5 cards)
1
Q
whats a market
A
any place that brings buyers & sellers together to trade at an agreed price
2
Q
what happens at equilibrium price
A
sellers will be satisfied with the rate/quantity of sales and buyers are satisfied that the product provides benefits worth paying for
3
Q
define disequilibrium
A
prices where demand and supply are out of balance
4
Q
define equilibrium
A
means a state of equality of balance between marker demand and supply
no excess demand or supply
5
Q
equilibrium is also known as
A
market clearing price
