Econ Vocab 6

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Econ Vocab 6
2012-01-27 11:28:50

Econ Vocabulary chapter 6
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  1. Equilibrium
    the point at which quantity demanded and quantity supplied are equal
  2. Disequilibrium
    Describes any price or quantity not at equilibrium; when qunatity supplied is not equal to quantity demanded in a market
  3. Excess Demand
    when quantity demanded is more that quantity supplied
  4. Excess Supply
    When quantity supplied is more than quantity demanded
  5. Price Ceiling
    A maximum price that can be legally charged for a good or service
  6. Price Floor
    a minimum price for a good or service
  7. Rent Control
    A price ceiling placed on rent
  8. Minimum Wage
    a minimum price that an employer can pay a worker for an hour of work
  9. Surplus
    situation in which quantity supplied is greater that quantity demanded; also known as excess supply
  10. Shortage
    situation in which quantity demanded is greater than quantity supplied; also known as excess demand
  11. Search Costs
    the financial and opportunity costs consumers pay when searching for a good or service
  12. Supply Shock
    A sudden shortage of a good
  13. Rationing
    a system of allocating scarce goods and services using criteria other than price
  14. Black Market
    a market in which goods are sold illegally
  15. Spillover costs