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14 terms

Economics Chapter 6

STUDY
PLAY
equilibrium
the point at which the demand for a product or service is equal to the supply of that product or service
disequilibrium
describes any price or quantity not at equilibrium; when quantity supplied is not equal to quantity demanded in a market
shortage
when quantity demanded is more than quantity supplied
surplus
when quantity supplied is more than quantity demanded
price ceiling
a maximum price that can legally be charged for a good or service
rent control
a price ceiling placed on apartment rent
price floor
a minimum price for a good or service
minimum wage
a minimum price that can pay a worker for one hour of labor
inventory
the quantity of goods that a firm has on hand
fad
a product that is popular for a short period of time
search costs
the financial opportunity costs that consumers pay when searching for a good or service
supply shock
a sudden shortage of a good
rationing
a system of allocating scarce goods and services using criteria other than price
black market
a market in which goods are sold illegally, without regard for government controls on price or quantity