Equilibrium Essentials
A general state of balance between different forces.
equilibrium
Also known as a shortage, this happens when quantity demanded exceeds quantity supplied.
What is excess demand?
The first step in market analysis, showing the original market equilibrium on a graph.
What is drawing the initial demand and supply curves?
What is the tallest building in the world?
Burj Khalifa
A state where the forces of supply and demand are balanced.
What is market equilibrium?
Also known as a surplus, this happens when quantity supplied exceeds quantity demanded.
What is excess supply?
The second step in market analysis involves identifying which of these two elements is shifting and why.
What is demand or supply?
Which color appears on more national flags than any other color?
RED
The point on a graph where the demand curve intersects the supply curve.
What is market equilibrium?
The imbalance created when a store sets the price of a popular item too high.
What is excess supply (or a surplus)?
The visual action taken on a graph to represent a change in demand or supply.
What is drawing a new curve?
What animal was featured in original Tootsie Pop ads?
owl
The exact price set when a market reaches equilibrium.
What is the equilibrium price?
The imbalance created when a store sets the price of a popular item too low.
What is excess demand (or a shortage)?
The specific location labeled on a graph after shifting a demand or supply curve.
What is the new equilibrium point?
Where did mahjong originate?
China
The exact quantity bought and sold when a market is in equilibrium.
What is the equilibrium quantity?
The condition that initially occurs during a shift before a new market equilibrium is established.
What is excess demand or excess supply?
The final outcome to state at the end of a market equilibrium analysis.
What happens to the equilibrium price and equilibrium quantity?
Which electronic duo is known for hits like "Get Lucky"?
Daft Punk