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Definition
| When quantity demanded exceeds quantity supplied at the current market price. |
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Definition
| When quantity supplied exceeds quantity demanded at the current market price. |
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Term
| Market mechanism(invisible hand) |
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Definition
The process by which a market reaches equilibrium without a central planner.
(A term to describe a situation in which individual actions of buyers and sellers tend to result in a positive social outcome). |
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Term
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Definition
| A situation in which the quantity supplied and the quantity demanded in a specified market are equal. |
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Definition
| The price at which quantity supplied equals quantity demanded. |
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Term
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Definition
| The quantity supplied and demanded at the equilibrium price. |
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Term
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Definition
| A shift of the demand or supply curve to the left or right, often as the result of events external to the particular market; a change in the quantity demanded or quantity supplied at a given price. |
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Definition
| A change in the amount buyers want to purchase at a given price. |
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Term
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Definition
| A change in the amount sellers supply at a given price. |
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Term
| Movement along a demand curve |
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Definition
| The effect of a price change on the quantity demanded. |
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Term
| Movement along a supply curve |
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Definition
| The effect of a price change on the quantity supplied. |
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Term
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Definition
| The amount a borrower has to pay a lender each year in exchange for the use of the lender's money; given as a percentage of the loan. |
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Term
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Definition
| A shift in the demand curve for a good or service based on a change in consumer preferences. |
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Definition
| A good or service whose demand rises more or less in step with income. |
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Definition
| A good or service whose demand rises very sharply as income increases. |
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Term
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Definition
| A good or service whose demand falls as income increases. |
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Term
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Definition
| A situation where the quantity supplied of a good does not change much even if the price changes significantly. More precisely, a situation where the price elasticity of supply is less than 1. |
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Term
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Definition
| A situation where the quantity demanded does not change much even if the price changes significantly. More precisely, a situation where the price elasticity of demand is less than 1. |
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Term
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Definition
| Intuitively, a situation in which a small change in price has a big impact on quantity demanded. More precisely, a situation in which the price elasticity of demand is greater than 1. |
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Term
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Definition
| Intuitively, a situation in which a small change in price has a big impact on quantity supplied. More precisely, a situation in which the price elasticity of supply is greater than 1. |
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