1 year ago

Equilibrium (market-clearing price) – Price that equates the quantity supplied to the quantity demanded.

Market mechanism – Tendency in a free market for price to change until the market clears.

Surplus – Situation in which the quantity supplied exceeds the quantity demanded.

Shortage – Situation in which the quantity demanded exceeds the quantity supplied.


Bijay Satyal
Nov 24, 2021
More related questions

Questions Bank

View all Questions