2.5 Price Determination Flashcards
(4 cards)
1
Q
Define market equilibrium price
A
The price at which demand and supply curves in a given market meet
2
Q
Define disequilibrium price
A
The price at which market supply and demand DO NOT meet
3
Q
What is it called as when the price is above equilibrium price?
A
Surplus
4
Q
What is it called as when the price is below equilibrium price?
A
Shortage
