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13 Cards in this Set
- Front
- Back
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Market Equilibrium |
Occurs when the quantity demanded in the quantity supplied at a particular price are equal |
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Equilibrium Price |
The price at which the quantity demanded and the quantity supplied are equal |
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Surplus |
The result of the quantity supplied being greater than the quantity demanded |
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Shortage |
The result of the quantity demanded being greater than the quantity supplied |
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Disequilibrium |
Occurs when quantity demanded and the quantity supplied are not in balance |
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Competitive Pricing |
Occurs when the producers sell products at lower prices to lure customers away from rival producers while still making a profit |
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Characteristics of the Price System |
Neutral, Market-Driven, Flexible, and Efficient |
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Incentive |
Encourages people to act in certain ways |
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Price Ceiling |
The legal maximum price that sellers may change for a product |
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Price Floor |
The legal minimum price that buyers must pay for a product |
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Minimum Wage |
A legal minimum amount that an employer must pay for one hour of work |
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Rationing |
A government system for allocating goods and services using criteria other than price |
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Black Market |
Involve illegal buying or selling in violation of price controls or rationing |
