Examlex

Solved

If the Quantity Demanded Is Greater Than the Quantity Supplied

question 5

Short Answer

If the quantity demanded is greater than the quantity supplied this is known as 'excess demand' or a ________.


Definitions:

Average Cost

The total cost of production divided by the quantity of output, representing the cost per unit of output.

Interest Rate

The cost of borrowing money or the return on investment, expressed as a percentage of the principal.

Market Price

The current price at which a good or service can be bought or sold, determined by supply and demand.

Diminishing Returns

A rule in economics that asserts once investments in a specific sector reach beyond a certain threshold, the returns on those investments will not keep rising if all other factors stay unchanged.

Related Questions