test 7 Flashcards
(14 cards)
the point at which the demand for a product or service is equal to the supply of that product or service
equilibrium
any price or quantity not at equilibrium, when quantity supplied is not equal to quantity demanded in a market
disequilibrium
a situation in which consumers want more of a good or service than producers are willing to make available at a particular price
shortage
when quantity supplied is more than quantity demanded
surplus
a maximum price that can legally be charged for a good or service
price ceiling
a minimum price for a good or service
price floor
a price ceiling placed on apartment rent
rent control
a minimum price that an employer can pay a worker for an hour of labor
minimum wage
the quantity of good that a firm has on hand
inventory
the financial & opportunity cost that consumers pay when searching for a good or service
search costs
the direct exchange of one set of goods or services for another
barter
a sudden shortage of a good
supply shock
a system of allocating scarce goods & services using criteria other than price
rationing
a market in which goods are sold illegally, without regard for government control on prices & quantity
black market
