Market Equilibrium

The point at wich 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 porducers when the market is in equilibrium.

Price Controls

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

Price Floor

A mimimum price set by the government to prevent prices from going too low.  Minimum wage laws swet 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.

Market Price

The price a willing consumer pays to a willing producer for the sale of a good or service.

Disequalibrium

The quantity demanded is no longer equal to the quantity supplied- it is either in shortage or surplus.

Excess Demand

The quantity demanded at a specific price exceeds the quantity supplied- leading to a shortage.

Excess Supply

The quantity supplied at a specific price exceeds the quantity demanded- leading to a surplus.