41 econ

41 econ - 20:43 2.2 equilibrium(ormarketclearing)price

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20:43 2.2 equilibrium ( or  market clearing) price    Price that equates the quantity supplied to the quantity demanded. market mechanism     Tendency in a free market for price to change until the  market clears. surplus     Situation in which the quantity supplied exceeds the quantity  demanded. shortage     Situation in which the quantity demanded exceeds the quantity  supplied. 2.3 Changes in Market Equilibrium Shift in the Supply Curve   to the right Lower costs result in lower prices and increase sales Market price drops, and total quantity productied increases Shift in the Demand Curve   to the right Ex: increase an income Consumers pay a higher price, and firms produce a greater quantity 2.4 elasticity     Percentage change in one variable resulting from a 1-percent  increase in another.
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41 econ - 20:43 2.2 equilibrium(ormarketclearing)price

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