Supply, Demand and Equillibrium

Producers are less willing and able to supply a product at every price.

Quantity demanded equals quantity supplied and the market clears.

The amount of a product that cannot be sold at a given price.

Setting a price below equillibrium is called

A situation achieved when a firm produces output most desired by consumers.

The __________ often steps in to set price floors and ceilings.

Even though you are willing to pay more than equilibrium P, you only pay where S & D intersect.

The amount by which the quantity demanded exceeds the quantity supplied at a particular price.

If you are willing to sell an item below equilibrium price that is called

A minimum legal price below which a product cannot be sold

The cost of time and information needed to carry out market exchange.

Whenever _____ is greater than _______ there will be a shortage.

The quantity of a product demanded is not equal to the quantity supplied

A situation achieved when a firm produces output at the lowest possible cost.

If you decrease the P you increase

When Demand increases the Demand Curve shifts to the 

A maximum legal price above which a product cannot be sold.

If you increase price, producer surplus will 

Diff b/n what you are willing to pay for an item & what you actually pay is consumer surplus.

Consumers are more willing and able to buy a product at every price.