Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
Price controls Price ceiling Price floor Deadweight loss Inefficient allocation to consumers Wasted resources Inefficiently low quality Black market Minimum wage Inefficient allocation of sales among sellers Inefficiently high quality Quantity control Quota Quota limit License Demand price Supply price Wedge Quota rent | a minimum price buyers are required to pay for a good or service; a form of price control. legal restrictions on how high or low a market price may go. a form of inefficiency in which sellers who would be willing to sell a good at the lowest price are not always those who actually manage to sell it; often the result of a price floor. the difference between the demand price and the supply price at the quota limit; this difference, the earnings that accrue to the licenseholder, is equal to the market price of the license when the license is traded. a form of inefficiency in which sellers offer high-quality goods at a high price even though buyers would prefer a lower quality at a lower price; often the result of a price floor. the difference between the demand price of the quantity transacted and the supply price of the quantity transacted for a good when the supply of the good is legally restricted. Of ten created by a quantity control, or quota. the right, conferred by the government or an owner, to supply a good. the total amount of a good under a quota or quantity control that can be legally transacted. a form of inefficiency in which some people who want the good badly and are willing to pay a high price don’t get it, and some who care relatively little about the good and are only willing to pay a low price do get it; often a result of a price ceiling. the price of a given quantity at which producers will supply that quantity. an upper limit, set by the government, on the quantity of some good that can be bought or sold; also referred to as a quota. a maximum price sellers are allowed to charge for a good or service; a form of price control. a legal floor on the wage rate. The wage rate is the market price of labor. a form of inefficiency in which people expend money, effort, and time to cope with the shortages caused by a price ceiling. a form of inefficiency in which sellers offer low-quality goods at a low price even though buyers would prefer a higher quality at a higher price; often a result of a price ceiling. an upper limit, set by the government, on the quantity of some good that can be bought or sold; also referred to as a quantity control. the loss in total surplus that occurs whenever an action or a policy reduces the quantity transacted below the efficient market equilibrium quantity. 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 price of a given quantity at which consumers will demand that quantity. |