Price Controls

0.0(0)
studied byStudied by 0 people
0.0(0)
full-widthCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/4

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

5 Terms

1
New cards

Efficient

The allocation that maximizes gains from trade.

2
New cards

Price Ceiling

The maximum price any seller can legally charge

3
New cards

Shortage

Occurs when, at the current price, the quantity demanded is greater than the quantity supplied.

4
New cards

Price Floor

The minimum price any seller can legally charge.

5
New cards

Surplus

Occurs when, at the current price, the quantity demanded is less than the quantity supplied. Should not be confused with similar sounding terms: producer surplus and consumer surplus.

Producer surplus and consumer surplus refer to instances when the producer or consumer get some value from a trade. A surplus refers to when there is more of a good produced than will be purchased at the price.