the price at which demand is equal to supply and there is no tendency for change
1 of 7
Disequilibrium
a situation within the market where demand is unequal to supply
2 of 7
Excess supply
When supply is greater than demand at a particular price level; this should signal to producers to lower prices and may make some producers leave the market
3 of 7
Excess demand
when demand is greater than supply at a particular price level; this may raise prices which could lead to
4 of 7
Minimum price
a price floor below which the price of a good or service is not allowed to decrease
5 of 7
Maximum price
a price ceiling above which the price of a good or service is not allowed to increase
6 of 7
Market-clearing price
the price at which all goods that are supplied will be demanded
7 of 7
Other cards in this set
Card 2
Front
a situation within the market where demand is unequal to supply
Back
Disequilibrium
Card 3
Front
When supply is greater than demand at a particular price level; this should signal to producers to lower prices and may make some producers leave the market
Back
Card 4
Front
when demand is greater than supply at a particular price level; this may raise prices which could lead to
Back
Card 5
Front
a price floor below which the price of a good or service is not allowed to decrease
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