ECO P2

a situation in which the price has reached the level where quantity supplied equals quantity demanded.

• Market Equilibrium

• Equilibrium Price

• Equilibrium Quantity

• Surplus

• Supply Shortage

agreeable price between the buyers and the sellers.

• Market Equilibrium

• Equilibrium Price

• Equilibrium Quantity

• Surplus

• Supply Shortage

The quantity supplied and quantity demanded at the equilibrium price

• Market Equilibrium

• Equilibrium Price

• Equilibrium Quantity

• Surplus

• Supply Shortage

the market price is above the equilibrium value, there is an excess supply inthe market.

• Market Equilibrium

• Equilibrium Price

• Equilibrium Quantity

• Surplus

• Supply Shortage

If the market price is below the equilibrium value, then there is excess in demand.

• Market Equilibrium

• Equilibrium Price

• Equilibrium Quantity

• Surplus

• Supply Shortage

a maximum price at which a certain product can be sold. It is set lower than equilibrium market price.

• price ceiling

• price floors

• price controls

the lowest legal price a certain commodity/ good can be sold. It is set higher than equilibrium market price.

• price ceiling

• price floors

• price controls

are imposed because the government feels that the market price is too high

• price ceiling

• price floors

• price controls

is promulgated to seeks to stabilize the prices of basic necessities and prime commodities b by prescribing measures against undue price increases during emergency situations.

(a)