UO Econ 201 Midterm Exam: Econ 201 Midterm Exam: Updated Solution

equilibrium (Ans- a situation in which the market price has reached the level at which quantity supplied equals quantity demanded equilibrium price (Ans- the price that balances quantity supplied and quantity demanded equilibrium quantity (Ans- the quantity supplied and the quantity demanded at the equilibrium price surplus (Ans- a situation in which quantity supplied is greater than quantity demanded Shortage (Ans- a situation in which quantity demanded is greater than quantity suppliedlaw of supply and demand (Ans- the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance Elasticity (Ans- a measure of the responsiveness of quantity demanded or quantity demanded or quantity supplied to a change in one of its determinants