a shift of the supply curve, which changes the quantity supplied at any given price.

the actual amount of a good or service consumers are willing and able to buy at some specific price.

the actual amount of a good or service people are willing to sell at some specific price.

two goods for which a rise in the price of one of the goods leads to an increase in the demand for the other good.

a market in which goods or services are bought and sold illegally—either because it is illegal to sell them at all or because the prices charged are legally prohibited by a price ceiling.

the “law” that a higher price for a good or service, other things being equal, leads people to demand a smaller quantity of that good or service.

a change in the quantity supplied of a good arising from a change in the good’s price.

a form of inefficiency resulting from price floors in which those who would be willing to sell the good at the lowest price are not always those who manage to sell it.

the price of a good at which the quantity demanded of that good equals the quantity supplied of that good.

when a rise in income decreases the demand for a good; usually considered less desirable than more expensive alternatives.

a good or service that is used to produce another good or service.

the price of a given quantity at which consumers will demand that quantity.

a market in which there are many buyers and sellers of the same good or service, none of whom can influence the price at which the good or service is sold.

a form of inefficiency often resulting from price ceilings in which people who want a good badly and are willing to pay a high price don’t get it, and those who care relatively little about the good and are only willing to pay a relatively low price do get it.

shows the relationship between the quantity supplied and the price.

the difference between the demand price and the supply price of a good, often created by a quota.

the price of a good at which the quantity demanded of that good equals the quantity supplied of that good.

gives its owner the right to supply a good or service; a form of quantity control, as only those who are licensed can supply the good or service.

a shift of the demand curve, which changes the quantity demanded at any given price.

the “law” that, other things being equal, the price and quantity supplied of a good are positively related.

the value of foregone mutually beneficial transactions.

legal restrictions on how high or low a market price may go; typically take the form of either a price ceiling or a price floor.

the price of a given quantity at which producers will supply that quantity.

shows how much of a good or service producers would supply at different prices.

a form of inefficiency resulting from price floors in which sellers offer high-quality goods at a high price, even though buyers would prefer a lower quality at a lower price.

two goods (often consumed together) for which a rise in the price of one of the goods leads to a decrease in the demand for the other good.

a graphical representation of the demand schedule. It shows the relationship between quantity demanded and price.

a form of inefficiency resulting from price ceilings in which sellers offer low-quality goods at a low price even though buyers would prefer a higher quality at a higher price.

illustrates the relationship between quantity demanded and price for an individual consumer.

illustrates the relationship between quantity supplied and price for an individual producer.

when the quantity of a good or service demanded exceeds the quantity supplied; occurs when the price is below its equilibrium level and is also known as excess demand.

a minimum price that buyers are required to pay for a good or service.

a legal floor on the hourly wage rate paid for a worker’s labor.

a change in the quantity demanded of a good that is the result of a change in that good’s price.

when the quantity supplied of a good or service exceeds the quantity demanded; occurs when the price is above its equilibrium level and is also known as excess supply.

shows how much of a good or service consumers will be willing and able to buy at different prices.

the earnings that accrue to the license-holder from ownership of the right to sell the good.

when a rise in income increases the demand for a good; most goods are normal goods.

a form of inefficiency in which people expend money, effort, and time to cope with the shortages caused by the price ceiling or surpluses caused by the price floor.

a model of how a competitive market works.

the quantity of a good bought and sold at its equilibrium price.

a maximum price that sellers are allowed to charge for a good or service.

an economic situation when no individual would be better off doing something different; a competitive market is in equilibrium when the price has moved to a level at which the quantity demanded of goods equals the quantity supplied of that good.