ECON CHAP 6 KEY TERMS

Price

• price when quantity supplied equals quantity demanded

• the lowest legal price that can be paid for a product

• the monetary value of a product

•  to rise and fall uncertainty 

Neutral

•  favoring neither one side nor another

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

• situation where quantity supplied is less than quantity demanded at a given price

• done or brought about by free choice

Criteria

•  done or brought about by free choice

• situation where quantity supplied is greater than quantity demanded at a given price

• characteristics used to make a decision or judgment

• : simplified version of a complex concept of behavior expressed in the form of a graph, figure, equation or diagram 

Rationing

•  to rise and fall uncertainty 

•  randomly or by chance 

•  to make steady or unchanging

• system allocating goods and services without prices 

Biofuels

•  price when quantity supplied equals quantity demanded

• the monetary value of a product

• fuel made from wood, peat, municipal solid waste, straw, corn, tires, landfill gasses, fish oils and other waste

•  level of production where marginal cost is equal to marginal revenue 

Voluntary

•  favoring neither one side nor another

• done or brought about by free choice

• to make steady or unchanging

•  to rise and fall uncertainty 

Economic model

• a table showing the quantities that would be produced or offered for sale at each and every possible price in the market at a given point in time

•  simplified version of a complex concept of behavior expressed in the form of a graph, figure, equation or diagram 

•  stages of production where output increases at a decreasing rate as more units of variable input are added

• a graph that shows the quantities supplied at each and every possible price in the market

Equilibrium price

• the lowest legal price that can be paid for a product

• the monetary value of a product

• price when quantity supplied equals quantity demanded

• system allocating goods and services without prices 

Equilibrium quantity

• quantity of output supplied that is exactly equal to the quantity demanded at the equilibrium price

• the lowest legal price that can be paid for a product

• : price floor for agricultural products set by the government to stabilize  farm prices

• situation where quantity supplied is greater than quantity demanded at a given price

Surplus

• situation where quantity supplied is less than quantity demanded at a given price

• loan that carries neither penalty nor further obligation to pay

•  characteristics used to make a decision or judgment

• situation where quantity supplied is greater than quantity demanded at a given price