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Cards In This Set
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Market Equilibrium
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Occurs when the quantity demanded and the quantity supplied at a particular price are equal
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Equilibrium price
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Price at which the quantity demanded and the quantity supplied are equal
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Surplus
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The result of the quantity supplied being greater than quantity demanded
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Shortage
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The result of quantity demanded being greater than quantity supplied
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Disequilibrium
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Occurs when the quantity demanded and quantity supplied are not in balance
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Competitive pricing
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Occurs when producers sell products at lower prices to lure customers away from rival producers, while still making a profit
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Incentive
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Encourages people to act a certain way
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Price ceiling
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Is the legal maximum that sellers cna charge for a product
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Price floor
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Is the legal minimum price that buyers must pay for a product
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Minimum wage
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Legal minimum amount that an employer must pay for one hour of work
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Rationing
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Government system that allocaing goods and services using criteria other than price
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Black market
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Involves legal buying or selling in violation of price controls of rationing
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