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15 Cards in this Set
- Front
- Back
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Equilibrium |
The point of balance between price and quantity |
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Disequilibrium |
Describe any price or quantity not at equilibrium |
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Excess demand |
When quantity demanded is more than quantity supplied |
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Excess supply |
When quantity supplied is more than quantity demanded |
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Price ceiling |
A maximum price that can be legally charged for a good or service |
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Price floor |
A minimum price for a good or service |
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Rent control |
A price ceiling placed on rent |
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Minimum wage |
A minimum price that an employer can pay a worker for an hour or labor |
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Surplus |
Situation in which quantity supplied is greater than quantity demanded; also known as excess supply |
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Shortage |
Situation in which quantity demanded is greater than quantity supplied; also known as excess demand |
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Search cost |
The financial and opportunity costs consumers pay when searching for a good or service |
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Supply shock |
A sudden shortage of a good |
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Rationing |
A system of allocating scarce goods and services using criteria other than price |
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Black market |
A market in which goods are sold illegally |
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Spillover costs |
Costs of production that affect people who have no control over how much of good is produced |
