econ (prices vocab)

prices vocab

Quantity Supplied

The specific amount of a good or service that producers are willing and able to sell at a particular price during a specific time period.

Quantity Demanded

The specific amount of a good or service that consumers are willing and able to buy at a particular price during a specific time period.

Equilibrium

The market state where the quantity demanded equals the quantity supplied, resulting in a stable market price and no tendency for change.

Disequilibrium

Any state where the quantity demanded does not equal the quantity supplied, leading to either market shortages or market surpluses.

Shortage

A situation where the quantity demanded is greater than the quantity supplied, usually happening when the market price is set below the equilibrium price.

Surplus

A situation where the quantity supplied is greater than the quantity demanded, usually happening when the market price is set above the equilibrium price.

Price Ceiling

A legal maximum price that sellers are allowed to charge for a product or service, often leading to a market shortage if set below the equilibrium price.

Rent Control

A specific price ceiling that puts a legal limit on the amount landlords can charge for renting out apartments or homes.

Price Floor

A legal minimum price that buyers are required to pay for a product or service, often leading to a market surplus if set above the equilibrium price.

Minimum Wage

A specific type of price floor that sets the lowest legal amount employers can pay workers per hour.