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Market Equilibrium definitions

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  • Market Equilibrium
    A state where the quantity supplied equals the quantity demanded, resulting in no tendency for price to change.
  • Supply Curve
    A graphical representation showing the relationship between price and quantity supplied for a good.
  • Demand Curve
    A graph illustrating how the quantity demanded of a good varies with its price.
  • Nature
    Environmental or natural events that can directly affect the availability of goods in the market.
  • Expectations
    Anticipations by producers regarding future prices, influencing decisions to hire or store goods.
  • Subsidies
    Financial support from the government that lowers production costs and encourages increased supply.
  • Technology
    Advancements or improvements in production methods that typically boost the supply of goods.
  • Suppliers
    Entities or individuals providing goods to the market; an increase leads to greater supply.
  • Substitute in Production
    Alternative goods that producers can make; higher prices for these reduce supply of the original good.
  • Input Prices
    Costs of resources like labor and materials required for production; higher costs decrease supply.
  • Taxes
    Government-imposed charges on producers that raise costs and typically lower supply.
  • Storage
    Holding back current production in anticipation of future price changes, reducing present supply.
  • Shift Summary
    A consolidated overview of factors affecting demand and supply, useful for exam preparation.
  • Movement Along Curve
    A change in quantity supplied or demanded due to price variation, without creating a new curve.