ECON 1 Lecture Notes - Lecture 9: East Los Angeles College

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17 Jun 2020
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Market equilibrium: the laws of supply & demand. Market equilibrium: the intersection of the market demand & the market. Equilibrium: a state of rest, or balance, due to the equal action of. Excess supply: the amount by which quantity supplied exceeds. Excess demand: the amount by which quantity demanded exceeds. Difference between quantity supplied & quantity demanded. Surplus of goods that firms are unable to sell quantity supplied when price is below the equilibrium price. Difference between quantity demanded & quantity supplied. Shortage of goods available for consumers to buy quantity demanded when price is above the equilibrium price. Quantity purchased in market always equals the quantity sold no matter what the price (two opposing actions) Market will automatically return to the equilibrium from any other quantity-price combination. Returns here when in cases of excess. Sell products at discounts ( inventory reduction sales ) Expectation that price will fall lower their annual rate of production.

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