Chapter 4 Flashcards
1
Q
price rationing
A
The process by which the market system allocates good and services to consumers when quantity demanded exceeds quantity supplied.
2
Q
price ceiling
A
A maximum price that sellers may charge for a good, usually set by government.
3
Q
queuing
A
Waiting in line as a means of distributing goods and services: a nonprice rationing mechanism.
4
Q
favored customers
A
Those who receive special treatment from dealers during situations of excess demand
5
Q
ration coupons
A
Tickets or coupons that entitle individuals to purchase a certain amount of a given product per month.
6
Q
black market
A
A market in which illegal trading takes place at market-determined prices.
7
Q
Minimum wage
A
A price floor set for the price of labor.
