Market mechanism

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Revision as of 04:48, 4 May 2016 by imported>Doug Williamson (Align with study material.)
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The interaction of demand and supply, resulting in an equilibrium quantity and price being set by the market.


When demand exceeds supply, market prices are likely to rise.

When supply exceeds demand, market prices are likely to fall.

When demand and supply are equal, market prices are likely to remain stable.


See also