Factors of Supply and Demand

Equilibrium - The point in which a supply curve intersects with the demand curve.

Excess Demand - When quantity demanded is greater than quantity supplied; result in a shortage.

Price Ceiling - When the government puts a legal limit on how high the price of a product can be.

Excess Supply - It occurs when quantity supplied is greater than quantity demanded; results in surplus

Price Floor - Lowest legal price a commodity can be sold at.