The Market Mechanism

3 years ago
Microeconomics

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.

 

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Bijay Satyal
Bijay Satyal
Nov 24, 2021
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