AP Macroeconomics Flashcards: Market Equilibrium, Disequilibrium, and Changes in Equilibrium
Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026
Review key ideas with interactive flashcards. This set includes 10 cards to help you master important concepts.
What is a market surplus?
A surplus is a market imbalance where the quantity supplied is greater than the quantity demanded at a given price.
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What is a market surplus?
A surplus is a market imbalance where the quantity supplied is greater than the quantity demanded at a given price.
How would an increase in consumer income affect the equilibrium price and quantity for a normal good?
An increase in consumer income would increase demand, resulting in a new, higher equilibrium price and a new, higher equilibrium quantity.
What is the general term for a market state that includes surpluses and shortages?
A market experiencing an imbalance like a surplus or shortage is in a state of disequilibrium.
What happens to price when a market experiences a surplus?
When a surplus exists, market forces drive prices down toward equilibrium as suppliers try to sell their excess goods.
How would an improvement in production technology affect the equilibrium price and quantity?
An improvement in technology would increase supply, resulting in a new, lower equilibrium price and a new, higher equilibrium quantity.
What causes a new equilibrium price and quantity to be established?
A new equilibrium price and quantity are established when changes in the determinants of supply and/or demand cause the supply or demand curve to shift.
Define market equilibrium.
Market equilibrium is achieved at the price at which the quantity demanded and the quantity supplied are equal.
How do you calculate the size of a surplus or shortage?
You calculate the surplus or shortage by taking the difference between the quantity supplied and the quantity demanded at the disequilibrium price.
What is a market shortage?
A shortage is a market imbalance where the quantity demanded is greater than the quantity supplied at a given price.
How does a market experiencing a shortage return to equilibrium?
When a shortage exists, market forces drive prices up toward equilibrium as consumers compete for limited goods and suppliers respond to the high demand.