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The point at which there is neither a surplus nor a shortage is known as the equilibrium point. At this point, the quantity of a good or service demanded by consumers equals the quantity supplied by producers. This balance ensures that the market clears, meaning that all goods produced are sold and there are no unmet demands. The equilibrium price is the market price at which this balance occurs.
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What describes the situation that occurs when the equilibrum quantity has been reached?
there is no surplus or shortage
What is an antonym for shortage?
An antonym for "shortage" is "surplus." While a shortage refers to a lack or insufficiency of something, a surplus indicates an excess or abundance. In economic terms, a surplus occurs when the supply of a good or resource exceeds the demand for it.
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 are surplus and shortage related to equilibrium price?
Surplus occurs when the supply of a good exceeds its demand at a given price, leading to downward pressure on the price until it reaches equilibrium. Conversely, a shortage arises when demand surpasses supply, causing prices to rise as consumers compete for the limited quantity available. The equilibrium price is the point at which supply and demand are balanced, with no surplus or shortage present. Thus, both surplus and shortage drive the market toward the equilibrium price through adjustments in supply and demand.
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 describes the situation that occurs when the equilibrum quantity has been reached?
there is no surplus or shortage
What is the opposite of surplus?
The opposite of surplus (excess) is Deficit or Shortage.
What is an antonym for shortage?
An antonym for "shortage" is "surplus." While a shortage refers to a lack or insufficiency of something, a surplus indicates an excess or abundance. In economic terms, a surplus occurs when the supply of a good or resource exceeds the demand for it.
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 are surplus and shortage related to equilibrium price?
Surplus occurs when the supply of a good exceeds its demand at a given price, leading to downward pressure on the price until it reaches equilibrium. Conversely, a shortage arises when demand surpasses supply, causing prices to rise as consumers compete for the limited quantity available. The equilibrium price is the point at which supply and demand are balanced, with no surplus or shortage present. Thus, both surplus and shortage drive the market toward the equilibrium price through adjustments in supply and demand.
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.
When does shortage and surplus occur?
A shortage occurs when quantity demand exceeds quantity supplied. A surplus occurs when quantity supplied exceeds quantity demanded.
Suppose the price of corn is 3.25 per bushel. is there a shortage or surplus of corn at that price?
there is a surplus
What is the difference between a surplus and a deficit?
A surplus is more than needed, a deficit is a shortage or loss
Is there neither a shortage nor a surplus when there is a price floor?
A price floor can lead to a surplus rather than a shortage because it sets a minimum price above the equilibrium price, causing the quantity supplied to exceed the quantity demanded. In this situation, producers are willing to supply more at the higher price, but consumers are not willing to buy as much, resulting in excess supply. Therefore, a price floor typically creates a surplus in the market.
What is the antonyms for surplus?
deficit famine shortfall shortage lack
When the price floor is higher than the equilibrium price there is a a surplus b a shortage c both a shortage and a surplus dneither a shortage nor a surplus?
When the price floor is set above the equilibrium price, it leads to a surplus. This occurs because the higher price incentivizes producers to supply more goods than consumers are willing to buy at that price, resulting in excess supply in the market.
