Chapter 6
What is considered in any market?
supply and demand
what is a price floor?
A minimum price set by the government.
How does the market seem to change?
Advances in technology
What do black markets allow?
Allow consumers to pay more so they can buy a product when rationing makes it otherwise unavailable.
What is the impact on Ending Rent Control?
Some people wont be able to afford the higher rent.
What is equilibrium?
The point of balance at which the quantity demanded equals the quantity supplied.
What is rent control?
When price ceilings placed on apartment rents.
What is the black market?
When the federal government was unable to control the supply of goods passing through the economy.
What is supply stock?
a sudden shortage of a good.
what is rationing?
a system of allocating goods and services using criteria other than price.
What can shift a demand curve to the left or right?
advances in technology, new government taxes and subsidies, and changes in the prices of the raw materials and labor used.
Who tries to move towards equilibrium?
economist
what is shortage also known as?
excess demand
What was a market problem?
imperfect competition
When was cameras 1st introduced into the consumer market?
in 1994
What was a 2nd problem?
negative externalities
What can decrease in supply?
new technology or lower costs
where are prices are much more flexible?
output levels
what are prices affected by?
the laws of supply and demand and by government action.
what is the inventory?
the quantity of goods that a firm has on hand.