Surplus
Quantity supplied>Quantity demanded
QS>QD
Shortage
Quantity demanded>Quantity supplied
QD>QS
·
Equilibrium: The point in which
supply and demand intersect, at this point resources are used efficiently.
·
When resources are not used efficiently, Disequilibrium occurs.
Price Ceiling: A government
imposed price control on how high a price can be charged for a product of
service. (Ex: Mortgage in NYC)
Price Floor: A government
imposed price control on how low someone can charge for a product or service.
(Ex: Minimum wage)
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