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Economics
Economics Chapter Six
Term | Definition |
---|---|
equilibrium | the point at which the demand for a product or service is equal to the supply of that product or service |
disequilibrium | any price or quantity not at equilibrium; when quantity supplied is not equal to quantity demanded in a market |
shortage | when quantity demanded is more than quantity supplied |
surplus | when quantity supplied is more than quantity demanded |
price siling | a maximum price that can legally be charged for a good or service |
rent control | a price ceiling placed on apartment rent |
price floor | a minimum price for a good or service |
minimum wage | a minimum price that can an employer can pay a worker for one hour of labor |
inventory | the quantity of goods that a firm has on hand |
fad | a product that is popular for a short period of time |
search costs | the financial and opportunity costs that consumers pay when searching for a good or service |
supply shock | a sudden shortage of a good |
rationing | a system of allocating scarce goods and services using criteria other than price |
black market | a market in which goods are sold illegally, without regard for government controls on price or quantity |