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Module 7

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Market Equilibrium - Fill-in-the-Blank

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12th grade
macroeconomics
market equilibrium
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Zachary Foust
Zachary Foust
Estados Unidos

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Module 7Versión en línea

Market Equilibrium - Fill-in-the-Blank

por Zachary Foust
1

price off transacted better quantity equilibrium matches finds quantity equals

The supply and demand model is used to predict the actual at which a good is bought and sold , as well as the actual .

An economic situation is in equilibrium when no individual would be doing something different .

A competitive market is in equilibrium when the price has moved to a level at which the quantity of a good demanded the quantity of that good supplied .

The price that the quantity supplied and quantity demanded is the equilibrium price .

The quantity bought and sold at the equilibrium price is the .

The equilibrium price is also known as the market - clearing price because it is the price that " clears the market " by ensuring that every buyer willing to pay that price a seller willing to sell at that price .

2

equilibrium intersect

The price at which the supply curve and the demand curve intersect is the price .

The quantity at which the supply curve and demand curve is the equilibrium quantity .

3

uniform above not

In any market in which the buyers and sellers have both been around for some time , sales and purchases tend to converge at a generally price .

If a seller offered a potential buyer a price noticeably what the buyer knew other people were paying , the buyer would be better off shopping elsewhere .

A seller would be willing to sell for significantly less than the amount he knew most buyers were paying .

4

demanded fall above find lower supplied

If the market price is above equilibrium , it will .

Surpluses occur when the price is its equilibrium level .

There is a surplus of a good or service when the quantity exceeds the quantity .

At a market price above equilibrium , some sellers cannot consumers willing to buy their product .

A surplus incentivizes frustrated sellers to offer a price .

5

below higher rise demanded supplied more

If the market price is below equilibrium , it will .

Shortages occur when the price is its equilibrium level .

There is a shortage of a good or service when the quantity exceeds the quantity .

When there is a shortage , buyers will offer than the prevailing price or sellers will realize that they can charge prices .

6

equilibrium

The price is the price at which there is neither surplus nor shortage .

7

demand not supply

There are events that shift the supply curve for a good without having much effect on the curve .

There are events that shift the demand curve without shifting the curve .

Events often shift either the supply curve or the demand curve , but both .

8

leftward falls rightward rises rises falls

An increase in demand is represented by a shift of the demand curve .

When demand for a good or service increases , the equilibrium price of the good or service and the equilibrium quantity of the good or service .

A decrease in demand is represented by a shift of the demand curve .

When demand for a good or service decreases , the equilibrium price of the good or service and the equilibrium quantity of the good or service .

9

falls rises rises leftward falls rightward

A decrease in supply is represented by a shift of the supply curve .

When supply of a good or service decreases , the equilibrium price of the good or service and the equilibrium quantity of the good or service .

An increase in supply is represented by a shift of the supply curve .

When supply of a good or service increases , the equilibrium price of the good or service and the equilibrium quantity of the good or service .

10

opposite same falls rises rises both falls

It sometimes happens that events shift the demand and supply curves at the same time .

When supply and demand shift in directions , the ulimate effect on the equilibrium quantity cannot be predicted .

When demand increases and supply decreases , the equilibrium price but the change in the equilibrium quantity is ambiguous .

When demand decreases and supply increases , the equilibrium price but the change in the equilibrium quantity is ambiguous .

When demand and supply shift in the direction , the ultimate effect on the equilibrium price cannot be predicted .

When both demand and supply increase , the equilibrium quantity but the change in the equilibrium price is ambiguous .

When both demand and supply decrease , the equilibrium quantity but the change in the equilibrium price is ambiguous .

 
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