Objective 6 Flashcards
1
Q
Price ceiling
A
The highest selling price for a good or service allowed by government or law.
2
Q
Price floor
A
The lowest selling price for a good or service allowed by government or law.
3
Q
Shortage
A
Insufficient quantity of inventory to meet the demand because price is below market equilibrium
4
Q
Surplus
A
Excess quantity inventory that remains unsold because price is greater than the market clearing price
5
Q
Non price rationing
A
Methods of allocating goods or services other than price, such as first-come-first-served, lottery, or other discrimination.
