Economics A-Level
Dynamic adjustment
What Dynamic adjustment means in Economics A-Level, as defined for AQA.
Definition of Dynamic adjustment
Check what you remember
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Reference: AQA
In the long run, supernormal profits attract new entrants, shifting industry supply right and driving down price until firms make only normal profit.
Topics that use Dynamic adjustment
- Perfect competition (AQA A-Level)
Related terms
- Allocative efficiency
- Average revenue
- Barriers to entry
- Dynamic efficiency
- Economic efficiency
- Externalities
- Labour markets
- Marginal revenue
Using Dynamic adjustment in the exam
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