Ch6 VOCAB MR TRANG

equilibrium

at this point of _, the quantity of a good or service that consumers are willing and able to buy equals the quantity that producers are willing and able to sell

equilibrium price

the price at which the quantity of a product demanded by consumers equals the quantity supplied by producers

market clearing price

at this price, the market will be "cleared" of all surpluses and shortages

equilibrium quantity

at this quantity, the amount of a good or service supplied by producers balances the quantity demanded by consumers

market price

is the price a willing consumer pays to a willing producer for the sale of a good or service

disequilibrium

when _ occurs in a market, the quantity demanded is no longer equal to the quantity supplied

excess demand

where the quantity demanded at a specific price exceeds the quantity supplied, thus producing a shortage

excess supply

a situation that exists when the quantity supplied of a product exceeds the quantity demanded, thus producing a surplus

price controls

government-imposed limits on the prices that producers may charge in the market

price floor

is a minimum price consumers are required to pay for a good or service

minimum wage

is a government-imposed legal floor on the hourly wage rate, which is the price the market pays for labor

price ceiling

is a maximum price consumers may be required to pay for a good or service

rent control

a legal limit on the amount a landlord can charge a tenant; a price ceiling on rents

rationing

is the controlled distribution of a limited supply of a good or service

black market

is an illegal market in which goods are traded at prices or in quantities higher than those set by law