Vocabulary 1
the point at which quantity demanded and quantity supplied come together
What is equilibrium?
What is minimum wage?
If the market price or quantity supplied is anywhere but at equilibrium price
What is disequilibrium?
A situation where the government sets a maximum amount that can be charged for rent in an area
What is rent control?
items like alcohol, cigarettes and gasoline have extra taxes, creating a price floor
What are luxury or sins taxes?
When supply is greater than demand?
What is a surplus?
A minimum price that can be legally charged for a good
What is a price celling?
When demand is greater than supply
What is a shortage?
A minimum price set by the government, that must be paid for a good or service
What is a price floor?
The amount of money required to purchase a good or service
What is price?