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AP Macro > 1.6: Market Equilibrium, Disequilibrium, & Changes In Equilibrium > Flashcards

1.6: Market Equilibrium, Disequilibrium, & Changes In Equilibrium Flashcards

1
Q

Equilibrium

A

Qs= Qd

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2
Q

Surplus

A

Qd<Qs

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3
Q

Shortage

A

Qd> Qs

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4
Q

Where does the Free Market pushes prices towards ?

A

Equilibrium

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5
Q

What do producers do to prices when there is a surplus?

A

Lower prices

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6
Q

What do producers do to prices when there is a shortage?

A

Raise prices

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7
Q

Double Shift

A

If two curves shift at the same time, either the price or quantity will be indeterminate

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8
Q

Price Ceiling

A

Max. legal price a seller can charge for a product.

Goal: Make prices affordable

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AP Macro (40 decks)

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