![Picture](/uploads/1/4/0/8/14081864/9966294.png?188)
Equilibrium: the point where the amount of goods supplied meets the demand for the product.
Disequilibrium: when the quantity supplied does not equal the quantity demanded. This can lead to a shortage or a surplus.
Price Ceiling: A maximum price that can legally be charged for a good or service. The government sets these to have price control.
|
Price Floor: A minimum price that can legally be charged for a good or service.
Minimum Wage: An example of the price floor is the government is setting a price for which no one can get paid less then. It insures that people get a certain amount of money paid.
|
Search Cost: The amount financial and opportunity cost that one pays when looking for a good or service.
- For example, when you call or drive to different stores to figure out the lowest possible cost for a good, this is the search cost.