Vocabulary

market equilibrium  The point at which the quantity of a product demanded by consumers in a market equals the quantity supplied by producers.

equilibrium price  The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers.

equilibrium quantity  The quantity of a good or service demanded by consumers and supplied by producers when the market is in equilibrium.

price controls  Government-imposed limits on the prices that producers may charge in the market.

price floor  A minimum price set by the government to prevent prices from going too low. Minimum wage laws set a price floor for wages paid to workers.

price ceiling  A maximum price set by the government to prevent prices from going too high. Rent control laws set a price ceiling on the amount of rent a landlord can charge a tenant.

rationing  The controlled distribution of a limited supply of a good or service.

black market  An illegal market in which goods are traded at prices or in quantities higher than those set by law.



Chapter Sections

6.1 – Introduction
6.2 – What Happens When Demand Meets Supply?
6.3 – What Happens When the Price Isn't “Right”?
6.4 – How Do Shifts in Demand or Supply Affect Markets?
6.5 – How Do Shifts in Demand or Supply Affect Markets?
6.6 – How Does Government Intervention Affect Markets?
Summary


Chapter 6 - Textbook Scan