Chapter 6 Econ Vocab

  1. Equilibrium
    Point at which quantity demanded and quantity supplied are equal.
  2. Disequilibrium
    Describes any price or quantity not at equilibrium; when quantity supplied is not equal to quantity in the market.
  3. Excess Demand
    When quantity demanded is more than quantity supplied.
  4. Excess supply
    When quantity supplied is more than quantity demanded.
  5. Price Ceiling
    Maximum price that can be legally charged for a good or service.
  6. Price Floor
    Minimum price for a good or service.
  7. Rent Control
    Price ceiling placed on rent.
  8. Minimum Wage
    Minimum price that an employer can pay a worker for an hour of labor.
  9. Surplus
    Situation in which quantity supplied is greater than 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
    Financial and opportunity costs consumers pay when searching for a good or service.
  12. Supply Shock
    A sudden shortage of a good.
  13. Rationing
    System of allocating scarce goods and services using criteria other than price.
  14. Black Market
    Market in which goods are sold illegally.
  15. Spillover Costs
    Costs of production that affect people who have no control over how much of a good is produced.
Card Set
Chapter 6 Econ Vocab
Words and defs for econ vocab quiz.