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11 Cards in this Set
- Front
- Back
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Surplus
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A condition in which the quantity supplied is greater than the quantity demanded. Surplus only occurs at prices greater than the equilibrium price
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Shortage
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A condition in which the quantity demanded is greater than the quantity supplied. Shortage only occurs at prices less than the equilibrium price
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Equilibrium Price (Market-Clearing Price)
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The price at which the quantity demand of a good equals the quantity. QD=QS
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Equilibrium Quantity
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The quantity that corresponds to equilibrium price. The quantity at which the amount of the good that buyers are willing and able to buy equals the amount that sellers are willing and able to buy equals the amount that the sellers are willing and able to sell, and both equal the amount actually bought and sold
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Disequilibrium Price
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A price other than than the equilibrium price.
QD does not equal QS and vice |
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Disequilibrium
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A state of either surplus or shortage in a market
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Equilibrium
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"At rest" point on the graph where the supply curve and demand curve intersect
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Consumers' Surplus
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The difference between the maximum price a buyer is willing and able to pay for a good or service and the price is actually paid. CS= Max P - P paid.
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Producers' (Sellers') Surplus
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the difference between the price sellers receive for a good or service and the lowest price for which they have sold the good. PS= P received - Minimum selling P
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Total Surplus (TS)
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The sum of the consumers' surplus and the producers' surplus. TS= CS+PS
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Spontaneous Order
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The Spontaneous emergence of of order out of the self-interested actions of individuals. An unintended consequence of human action
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