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11 Cards in this Set
- Front
- Back
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Market Equilibrium
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intersection of market demand & market supply curves at which quantity demanded equals quantity supplied
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Equilibrium
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a state of rest, or balance, due to the equal action of opposing forces or influences; a situation from which no one has any incentive to change their behavior
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Excess Supply
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amount by which quantity supplied exceeds quantity demanded when price is above equilibrium price
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Excess Demand
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amount by which quantity demanded exceeds quantity supplied when price is below equilibrium price
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Stable Market Equilibrium
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property of the market equilibrium such that the market automatically returns to the equilibrium from any other quantity-price combination
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Real Price Change
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actual change in a price less the general rate of inflation
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Marginal Value
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value of the last good consumed by each consumer
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Net Value
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at any quantity exchanged in the market, the difference between the total value as perceived by the consumers & the total cost as experienced by the firms
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Total Market Value
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dollars exchanged between the consumers & producers in the market, equal to the total expenditures paid by the consumers & the total revenues received by the firms
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Consumer Surplus
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at any quantity exchanged in the market, the difference between the total value to consumers & the total market value
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Producer Surplus
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at any quantity exchanged in the market, the difference between the total market value & the total cost of production
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