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What's so special to economists about equilibrium? (Match each to True or False) - It's what prevents buyers and sellers from agreeing on a price
What's so special to economists about "equilibrium"? (Match each to "True" or "False") - It's what prevents buyers and sellers from agreeing on a price - It's the one place where buyer and seller are both happy (relative to price and quantity) - It's "magnetic": when the market leaves equilibrium, there's a natural "pull" (or invisible hand) bringing the market back to equilibrium. - A price floor that's set above equilibrium will create a surplus - A price floor that's set above equilibrium will create a shortage - A price floor that's set below equilibrium will create a shortage - A price ceiling that's set below equilibrium will create a surplus - A price ceiling that's set below equilibrium will create a shortage
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