Equilibrium Flashcards
1
Q
Equilibrium
A
The price at which the quantity supplied by firms is equal to the quantity demanded by consumers
2
Q
What happens when there is an increase in demand?
A
Price goes up
Quantity goes up
3
Q
What happens when there is an increase in supply?
A
Price goes down
Quantity goes up
4
Q
What happens when there is a decrease in demand?
A
Price goes down
Quantity goes down
5
Q
What happens when there is a decrease in supply?
A
Price goes up
Quantity goes down
