Ch 6 - Prices

A legal minimum on the price at which a good can be sold

• target price

• price ceiling

• economic model

• price floor

price floor for agricultural products set by the government to stabilize farm income

• price floor

• target price

• price ceiling

• nonrecourse loan

A situation in which quantity demanded is greater than quantity supplied

• economic model

• shortage

• target price

• biofuels

the highest legal price that can be charged for a product

• price floor

• equilibrium price

• economic model

• price ceiling

extra supply

• shortage

• surplus

• biofuels

• price

A system of allocating scarce goods and services using criteria other than price

• shortage

• target price

• economic model

• rationing

the quantity supplied and the quantity demanded at the equilibrium price

• equilibrium price

• equilibrium quantity

• economic model

• nonrecourse loan

agricultural loan that carries no penalty or further obligation if it is not repaid

• target price

• nonrecourse loan

• economic model

• equilibrium price

the monetary value of a product

• price floor

• price

• price ceiling

• biofuels

the price that balances quantity supplied and quantity demanded

• nonrecourse loan

• equilibrium quantity

• equilibrium price

• price ceiling