Chapter 6 vocab Flashcards
The point at which quantity demanded and quantity supplied are equal
Equilibrium
Describes any price or quantity not at equilibrium; when quantity supplied is not equal to quantity demanded in a market
Disequilibrium
When quantity demanded is more than a quantity supplied
Excess demand
When quantity supplied is more than quantity demanded
Excess supply
A maximum price that can be legally charged for a good or service
Price ceiling
A minimum price for a good or service
Price floor
A price ceiling place on rent
Rent control
A minimum price that an employer can pay a worker for an hour of labor
Minimum wage
Situation in which quantity supplied is greater than quantity demanded, also known as excess supply
Surplus
Situation in which quantity demanded is greater than quantity supplied, also known as excess demand
Shortage
The financial and opportunity costs consumers pay when searching for a good or service
Search costs
A sudden shortage of a good
Supply shock
A market in which goods are sold illegally
Black market
Costs of production that affect people who have no control over how much of a good is produced
Spillover costs
