1.2.3 - theme 1 Flashcards
(4 cards)
1
Q
What is equilibrium price?
A
The price where supply and demand are equal. Also known as market clearing price.
2
Q
What are non-price factors?
A
Factors other than price e.g. Change in consumer incomes, advertising and seasonality.
3
Q
What is a shortage in markets?
A
Where demand exceeds supply.
4
Q
What is a surplus in markets?
A
Where supply exceeds demand.
