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In a market without price controls market pressures push prices toward shortage prices equilibrium prices or surplus prices?
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What describes the situation that occurs when the equilibrium quantity has been reached?
There is no surplus or shortage
Market clearing price?
The price that exists when a market is clear of shortage and surplus, or is in equilibrium.
What describes the situation that occurs when the equilibrum quantity has been reached?
there is no surplus or shortage
Which is shown by the intersection of the supply curve and the demand curve?
The equilibrium price and quantity - those which clear the market, leaving neither a surplus nor a shortage of the good.
How does a surplus or a shortage of a good or service affect the market price?
A surplus or a shortage of a good or service affects the market price directly. When there is a surplus, the prices goes down and when there is a shortage the price increases due to the demand levels.
What describes the situation that occurs when the equilibrium quantity has been reached?
There is no surplus or shortage
Describes the situation that occurs when the equilibrium quantity has been reached?
There is no surplus or shortage
Market clearing price?
The price that exists when a market is clear of shortage and surplus, or is in equilibrium.
What describes the situation that occurs when the equilibrum quantity has been reached?
there is no surplus or shortage
Which is shown by the intersection of the supply curve and the demand curve?
The equilibrium price and quantity - those which clear the market, leaving neither a surplus nor a shortage of the good.
What is the opposite of surplus?
The opposite of surplus (excess) is Deficit or Shortage.
How does a surplus or a shortage of a good or service affect the market price?
A surplus or a shortage of a good or service affects the market price directly. When there is a surplus, the prices goes down and when there is a shortage the price increases due to the demand levels.
How does the consumer surplus change as the equilibrium price of a good rises or falls?
As the equilibrium price of a good raises the producer surplus increases as well, and as the equilibrium price falls the producer surplus decreases accordingly.
When a surplus of a product will arise when price is above equilibrium or below equilibrium?
above equilibrium
When does shortage and surplus occur?
A shortage occurs when quantity demand exceeds quantity supplied. A surplus occurs when quantity supplied exceeds quantity demanded.
What happens to consumer surplus if the price is above equilibrium?
When the price is above equilibrium, there is a surplus because supply is greater than demand. The price of the good will naturally decrease back to its equilibrium price where demand and suppy interesect, thus eliminating the surplus.
What is the difference between a surplus and a deficit?
A surplus is more than needed, a deficit is a shortage or loss
