Unit 6 Vocab Flashcards
Price
Monetary value of a product.
Rationing
System of allocating goods without price.
Biofuels
Fuel made from living materials.
Equilibrium Price
Price where quantity supplied equals quantity demanded.
Equilibrium Quantity
Quantity of output supplied is equal to quantity demanded at equilibrium price.
Surplus
When quantity supplied is greater than quantity demanded.
Shortage
When quantity supplied is less than quantity demanded.
Price Ceiling
Highest legal price that can be charged on a product.
Price Floor
Lowest legal price that can be paid for a product.
Target Price
Price floor for agricultural products set by the government to stabilize farm prices.
Nonrecourse Loan
Loan that carries neither penalty or obligation to repay.