Monday, 13 April 2015

Equilibrium - Economics Unit 1


Equilibrium is where the market clears, this means that everything bought to market is sold.

  • Where supply and demand intersect

  • Excess supply is where supply is greater than demand, this usually causes a cut in price as it moves back to equilibrium.

  • Likewise, excess demand is where demand for a product is greater than the supply of the good, this usually causes a price rise.


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