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Equilibrium
Point at which quantity demanded and quantity supplied are equal.
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Disequilibrium
Describes any price or quantity not at equilibrium; when quantity supplied is not equal to quantity in the market.
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Excess Demand
When quantity demanded is more than quantity supplied.
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Excess supply
When quantity supplied is more than quantity demanded.
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Price Ceiling
Maximum price that can be legally charged for a good or service.
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Price Floor
Minimum price for a good or service.
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Rent Control
Price ceiling placed on rent.
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Minimum Wage
Minimum price that an employer can pay a worker for an hour of labor.
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Surplus
Situation in which quantity supplied is greater than quantity demanded; also known as excess supply.
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Shortage
Situation in which quantity demanded is greater than quantity supplied; also known as excess demand.
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Search Costs
Financial and opportunity costs consumers pay when searching for a good or service.
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Supply Shock
A sudden shortage of a good.
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Rationing
System of allocating scarce goods and services using criteria other than price.
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Black Market
Market in which goods are sold illegally.
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Spillover Costs
Costs of production that affect people who have no control over how much of a good is produced.
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