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Flashcards in Equilibrium Deck (4)
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1

equilibrium

occurs when demand is equal to supply, the market clears and there is no tendency for change

2

disequilibrium

occurs when the demand is not equal to supply, the market does not clear and there is a tendency for change

3

excess supply

when supply exceeds demand, resulting in a surplus

4

excess demand

when demand exceeds supply, resulting in a shortage