Equilibrium

Question 1

equilibrium

Answer 1

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

Question 2

disequilibrium

Answer 2

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

Question 3

excess supply

Answer 3

when supply exceeds demand, resulting in a surplus

Question 4

excess demand

Answer 4

when demand exceeds supply, resulting in a shortage