LS10 - Price Determination Flashcards
1
Q
Excess demand
A
When the price of a good is less than the equilibrium price, and sothere are more consumers willing to buy the product than producers are willing to sell
Quantity demanded > supplied
2
Q
Excess supply
A
When the price of a good is above the equilibrium price so less consumers are willing to buy than producers want to sell
Quantity supplied > demanded
3
Q
Market
A
Where buyers and sellers meet and exchange money/goods for other good/services - can take place in person, internet etc
