1.2.6 Price Determination Flashcards by Harry Sroka

Q

What is the equilibrium point?

A

Where all demand is fufilled and no supply is unbought.

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Q

Excess Supply

A

If price is set above quilibrium, demand is lower than what is supplied.

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Q

Excess Demand

A

Not all demand is fufilled as price is set below equilibrium.

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