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Details Title: Chapter 4 Key Terms Description: Vocabulary for Chapter 4 of CASE & FAIR Total Flash Cards: 11 Created: 02/05/2007 23:54:12	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term price rationing Definition process by which the market system allocates goods and services to consumers when quantity demanded exceeds quantity supplied Term price ceiling Definition a maximum price that sellers may charge for a good, usually set by government Term queuing Definition waiting in line as a means of distribution goods and services; a nonprice rationing mechanism Term favored customers Definition those who receive special treatment from dealers during situations of excess demadn Term ration coupons Definition tickets or coupons that entitle individuals to purchase a certain amount of a given product per month Term black market Definition a market in which illegal trading takes place at market-determined prices Term price floor Definition a minimum price below which exchange is not permitted Term minimum wage Definition a price floor set under the price of labor Term consumer surplus Definition the difference between the maximum amount a person is willing to pay for a good and its current market price Term producer surplus Definition the difference between the current market price and the full costs of production for the firm Term deadweight loss Definition the net loss of producer and consumer surplus from underproduction or overproduction