Market mechanism: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Updated entry. Source ACT Glossary of terms) |
imported>Doug Williamson (Align with study material.) |
||
| Line 1: | Line 1: | ||
The interaction of [[demand]] and [[supply]], resulting in an equilibrium quantity and price being set by the market. | The interaction of [[demand]] and [[supply]], resulting in an equilibrium quantity and price being set by the market. | ||
When demand exceeds supply, market prices are likely to rise. | |||
When supply exceeds demand, market prices are likely to fall. | |||
When demand and supply are equal, market prices are likely to remain stable. | |||
Revision as of 04:48, 4 May 2016
The interaction of demand and supply, resulting in an equilibrium quantity and price being set by the market.
When demand exceeds supply, market prices are likely to rise.
When supply exceeds demand, market prices are likely to fall.
When demand and supply are equal, market prices are likely to remain stable.
