CONBINED 3.7-3.9

Inventory

The quantity of goods that a firm has available

Search Cost

The time, effort, and money spent finding the best deal or trading partner.

Barter

Trade one good for another

Supply shock

A sudden shortage of goods

Rationing

Controlled distribution of a scarce good or service

Black Market

Economic activity that occurs outside of government-sanctioned channels

Equilibrium

Balance state of market supply & demand

Disequilibrium

Supply and demand in a market don't match.

Causing either a shortage or a surplus

Shortage

The quantity demanded of a product exceeds the quantity supplied at a specific market price

Purplus

When there's more of something available than people want to buy at the current price

Price Ceiling

Rules to keep prices from becoming too high

Rent Control

A government-imposed limit on how much landlords can charge for a housing unit

Price Floor

A government-set minimum price for a good or service.

Minimum Wage

The lowest hourly wage employers are legally allowed to pay their workers.