Excess and Equilibrium
Excess and Equilibrium (1/19)
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Equilibrium - point at which the supply curve intersects w/ the demand curve, efficient
- Excess Demand - occurs when QD > QS
- results in shortage, consumers cannot get quantities of wanted
- Price Ceiling - creates a shortage; when gov't places legal limit on how high the price of a product can be
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Excess Supply - occurs when QS > QD
- results in surplus; producers have inventories they cannot rid
- Price Floor - lowest legal price a commodity can be sold at
Excellent coverage of the excess and equilibrium concepts. Grammar mistakes in your notes cause some confusion, but I was able to get the gist of your explanations and definitions. The graphs were very helpful to my understanding as well. Some stylistic advice would be to change the background image to something less distracting and change the font color, as the current blue conflicts with the dark gray backsplash.
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