Chapter 4 - Prices: Free, Controlled, and Relative Flashcards
1
Q
Tie-In Sale
A
A sale whereby one good can be purchased only if another good is also purchased
2
Q
Price ceiling
A
A government mandated maximum price above which legal trades cannot be made
3
Q
Price floor
A
A government mandated minimum price below which legal trades cannot be made
4
Q
Deadweight loss
A
The loss to society of not producing the competitive or supply and demand determined level of output
5
Q
Absolute price
A
The price of a good in money terms
6
Q
Relative price
A
The price of a good in terms of another good
