Microeconomics

  1. Market clearing, or equilibrium, price
    The price that clears the market, at which quantity demanded equals quantity supplied;the price where the demand curve intersects the supply curve.
  2. Equilibrium
    The situation when quantity supplied equals quantity demanded at a particular price.
  3. Shortage
    A situation in which quantity demanded is greater than quantity supplied at a price below the market clearing price.

    excess quantity demanded

    Shortages and scarcity are not the same thing.
  4. Surplus
    A situation in which quantity supplied is greater than quantity demanded at a price above the market clearing price.

    excess quantity supplied
Author
damea134
ID
227173
Card Set
Microeconomics
Description
Miller
Updated