Terms...
Surplus: QS > QD
(Quantity Supplied is greater than Quantity Demanded)
Shortage: QD > QS
(Quantity Demanded is greater than Quantity Supplied)
Marginal revenue: additional income from selling one more unit of good.
Equilibrium: Point in which supply and demand intersect, at this point resources are used efficiently.
Disequilibrium: When not used efficiently, not intersecting.
Price ceiling: government imposed price controlled on how high a price can be charged for a product or service. (EX: Rent control)
Price floor: government imposed price control on how low someone can charge for a product/service. (EX: Minimum wage)
Market equilibrium graphs:
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