ECON 201 Final Exam: Updated Guide ( Ohio State University): Questions & Answers

Equilibrium (Ans - the situation in a market when the quantity supplied equals the quantity demanded; graphically, this convergence happens where the demand curve intersects the supply curve equilibrium price (Ans - the price at which the quantity supplied equals the quantity demanded equilibrium quantity (Ans - the quantity that is supplied and demanded at the equilibrium price surplus (excess supply) (Ans - a situation in which the quantity of a good that is supplied is higher than the quantity demanded shortage (excess demand) (Ans - a situation in which the quantity of a good that is demanded is higher than the quantity suppliedmid-point method (Ans - method that measures percentage change in demand (or supply) relative to a point midway between two points on a curve; used to estimate elasticity perfectly elastic demand (Ans - demand for which the demand curve is horizontal, in a way such that demand could be any quantity at the given price, but drops to zero if the price increases