Chapter 4 Flashcards
1
Q
Equilibrium
A
quantity demanded is equal to quantity supplied
2
Q
surplus
A
quantity supplied is greater than quantity demanded
3
Q
shortage
A
quantity demanded is greater than quantity supplied
4
Q
lower price
A
increases quantity demanded
5
Q
Price Ceiling
A
max price allowed by law (below equilibrium)
6
Q
Price Floor
A
min price allowed by law (above equilibrium)
7
Q
High prices
A
result from scarcity (they don’t cause scarcity)
8
Q
A surplus of labor is called
A
unemployment
