Equilibrium Flashcards
1
Q
What is equilibrium
A
The point where quantity demanded meets the quantity supplied. Where there will be no unsold stock and customers will be able to buy all at the the price
2
Q
What is Excess demand
A
When the price is low so people are demanding more of the product that suppliers are willing to produce, this leads to the price of the product to rise
3
Q
What is excess supply
A
When not all of the quantity supplied is sold and there is left over stock, this cause ps the price of ten product to fall
