unit 4 vocabulary

law of demand: a higher price results in a lower quantity demanded and a lower price results in a higher quantity demanded

rent control: places a limit on how much money a landlord can demand for leasing or a renewal lease

price control: government-mandated maximum and minimum amount of money a good can be sold for

price ceiling: the maximum a good can be sold for

price floor: the minimum a good can be sold for

minimum wage: the lowest amount a worker can be legally paid

shortage: less quantity in stock than demanded

surplus: more quantity in stock than demanded

equilibrium price: when the supply of a good is equal to the demand of it

supply: how much of a good is available

law of supply: a higher price results in a higher supply and a lower price results in a lower supply

elasticity of demand: the degree to which demand is changed in response to price or income level changes

inelastic demand: when prices change, the demand for the good stays the same

unitary elastic demand: when prices change, the demand changes in the exact same way/proportionally

demand: the desire for a good from consumers

substitute good: a product that consumers see as similar or the same in value as another good

complementary good: two products that have a joint demand; if the demand for one product goes up, the demand for the other will do the same

diminishing marginal utility: the more of a product you use, the less satisfaction you feel

marginal benefit: the maximum a consumer is willing to pay for a product for its use or pleasantness