Modules 8 & 9 Vocab

Front

Government-mandated price limits for goods and services.

Back

Price Control

Front

Legal max price for a good/service

Back

Price Ceiling

Front

Legal minimum price for a good or service.

Back

Price Floor

Front

People who desire a good and pay high don’t get it; those indifferent and pay low do get it.

Back

Inefficient allocation to consumers

Front

Inefficiency from spending money, effort, and time to manage shortages from price ceilings or surpluses from price floors.

Back

wasted resources

Front

Inefficiency from price ceilings leads sellers to provide low-quality goods at low prices, despite buyers wanting higher quality at higher prices.

Back

Inefficient low quality

Front

A market where goods/services are sold illegally due to prohibition or price ceilings.

Back

Black Market

Front

Legal floor on hourly wage for labor

Back

Minimum Wage

Front

Inefficiency from price floors where lowest price sellers aren't always the ones selling.

Back

Inefficient allocation of sales among sellers

Front

Inefficiency from price floors: sellers provide high-quality goods at high prices, while buyers prefer lower quality at lower prices.

Back

Inefficiently high quality