Term
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Definition
| legal restrictions of how high or low a market price may go. |
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| maximum price sellers are allowed to change for a good. |
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| the minimum price buyers are required to pay for a good. |
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| exists when there are "missed opportunities"- ways in which production or consumption could be rearranged that would make some people better off without making other people worse off. |
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Term
| inefficient allocations to consumers |
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Definition
| people who want a good and are willing to pay a higher price don't get it, and those who care relatively little about the good are only willing to pay a low price to get it. |
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Definition
| caused by price ceilings; people spend money and expend efforts in order to deal with the shortages caused by the price ceilings |
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| inefficiently low quality |
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Definition
| caused by price ceilings; sellers offer low-quality goods at a low price even though buyers would prefer a higher quality at a higher price. |
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Definition
| is a market in which goods or services are bought and sold illegally- either because it is illegal to sell them at all or because the prices charged are legally prohibited by a price ceiling. |
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Definition
| a legal floor in the wage rates which is the market price of labor. |
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Term
| inefficient allocation of sales among sellers |
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Definition
| caused by price floors; those who would be willing to sell the good at the lowest price are not always those who actually manage to sell it. |
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Term
| inefficiently high quality |
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Definition
| sellers offer high quality goods at a high price' even though buyers would prefer a lower quality at a lower price. |
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Definition
| a upper limit on the quantities of some goods that can be bought or sold. the total amount of the good that can be legally transacted is the quota limit. |
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Definition
| the price at which consumers will demand that quantity. |
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Definition
| the price at which producers will supply that quantity |
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Definition
| a tax on sale of a good or service. |
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Definition
| a measure of who really pays taxes. |
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Definition
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Term
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Definition
| taxes both businesses and employees pay for Medicare, and social security. |
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