Term
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Definition
| The theory in which the action of independent, self-interested buyers and sellers will result in the highest possible economic surplus. |
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Term
| Perfectly Competitive Market |
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Definition
| A market in which no individual supplier has signifiant influence on the market price of a good/service. |
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Term
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Definition
| Economic gain by the buyers of a product. |
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Term
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Definition
| Economic gain by the sellers of a product. |
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Term
| Buyer's Reservation Price |
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Definition
| The highest price a buyer will offer to obtain a good or service. |
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Term
| Seller's Reservation Price |
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Definition
| The lowest price a seller will accept to provide a good or service. |
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Term
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Definition
| Maximum allowable price specified by law. |
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Term
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Definition
| A tax charged on each unit of a good or service. |
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Term
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Definition
| Transactions that should occur but are not able to. |
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Term
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Definition
| Minimum price allowed by law. |
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