EconCh4 - Price floor – A minimum price below which...

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Chapter 4 Price ceiling – A maximum price that sellers may charge for a good, usually set by government. Queuing – Waiting in line as a means of distributing goods and services: a nonprice rationing mechanism. Favored customers – Those who receive special treatment from dealers during situations of excess demand. Ration coupons – Tickets or coupons that entitle individuals to purchase a certain amount of a given product per month. Black market – A market in which illegal trading takes place at market-determined prices.
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Unformatted text preview: Price floor – A minimum price below which exchange is not permitted. Minimum wage – A price floor set under the price of labor. Consumer surplus – The difference between the maximum amount a person is willing to pay for a good and its current market price. Producer surplus – The difference between the current market price and the full cost of production for the firm. Deadweight loss – The net loss of producer and consumer surplus from underproduction or overproduction....
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