Determining Market Price – Flashcards
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What happens when the quantity of goods is higher than demand?
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excess supply
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On a graph, a(n) _____ shows the demand portion of equilibrium.
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demand curve
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The graph shows demand.
In order to achieve equilibrium, what else must be included on the graph?
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supply curve
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The graph shows a point of equilibrium.
How many goods must be supplied to achieve equilibrium?
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15
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The graph shows excess supply.
Which needs to happen to the price indicated by p2 on the graph in order to achieve equilibrium?
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It needs to be decreased
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On a graph, an equilibrium point is where
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a supply curve and a demand curve meet.
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Disequilibrium occurs when
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supply and demand are out of balance
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The graph shows a point of equilibrium.
What does "Q" represent on the graph?
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the quantity at the equilibrium point
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The graph shows excess demand.
Which explains why the price indicated by p2 on the graph is lower than the equilibrium price?
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as prices fall, demand goes up
