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12 Cards in this Set
- Front
- Back
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A situation in which the quantity demanded of a good or service at a particular price is equal to the quantity supplied at that price
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Market Equilibrium
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The price at which the quantity of a product demanded by consumers and the quantity supplied by producers are equal
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Equilibrium Price
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The result of quantity supplied being greater than quantity demanded, usually because prices are too high
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Surplus
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The result of quantity demanded being greater than quantity supplied, usually because prices are too low
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Shortage
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When there is an imbalance between quantity demanded and quantity supplied and the process of finding equilibrium starts over again
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Disequilibrium
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Occurs when producers sell goods and services at prices that best balance the twin desires of making the highest profit and luring customers away from rival producers
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Competitive Pricing
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A way to encourage people to take a certain action
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Incentive
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An established maximum price that sellers may charge for a good or service
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Price Ceiling
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An established minimum price that buyers must pay for a good or service
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Price Floor
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The minimum legal price that an employer may pay a worker for one hour of work
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Minimum Wage
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A system in which the government allocates goods and services using factors other than price
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Rationing
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Goods and services are illegally bought and sold in violation of price controls or rationing
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Black Market
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