How do markets work? - where do buyers and sellers meet?

9 important questions on How do markets work? - where do buyers and sellers meet?

What is a supply function?

An equation that helps you calculate the quantity of supplied products at different prices

Which equation belongs to the supply curve?

Qa = ap - b

How does a shift on the supply curve happen?

When a producer changes the price, the supplied quality changes
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

Give examples that can cause a shift of the supply curve?

1. Changing in costs
2. Technology increases and causes a different production method

What is the market equilibrium?

The point where the supply and demand are equal

What is the price called on a certain point?

The equilibrium price

What is the quantity called on a certain point?

The equilibrium quantity

What is excess supply?

The difference between demand and supply when the price is higher than the equilibrium price

What is excess demand?

The difference between demand and supply when the price is below the equilibrium price

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo