AP®︎ Microeconomics: Topic 2.7 Flashcards

A market state where quantity demanded does not equal quantity supplied.

Prices rise during shortages and fall during surpluses until quantity demanded equals quantity supplied.

The difference between what buyers are willing to pay and what they actually pay.

The difference between the market price and sellers' minimum acceptable price.

The sum of consumer surplus and producer surplus in a market.

The lost total surplus from producing less or more than the efficient equilibrium quantity.

Price controls create shortages or surpluses; shifted curves create a new equilibrium where quantity demanded equals quantity supplied.

When supply and demand shift together, one outcome may be certain while the other is indeterminate.

Subtract quantity supplied from quantity demanded at a given price to find the market imbalance.

Use the areas of the relevant triangles or rectangles before and after the market change.

The size of price, quantity, and surplus changes depends on demand and supply elasticities.

A shortage means quantity demanded exceeds quantity supplied; a surplus means the opposite.

Demand shifts change price and quantity together, while supply shifts change them in opposite directions.

The market outcome where quantity demanded equals quantity supplied.