cartel
A formal organization that coordinates prices and production
subsidy
A government payment that supports a business or market
monopoly
market in which a single seller dominates
monopsony
A market situation where there is only one buyer
Olgipoly
A market structure in which a few large firms dominate a market
price war
A series of competitive price cuts that lowers the market below the cost of production
supply shock
A sudden shortage of a good
collusion
An agreement among firms to divide the market; set prices or limit production
demand shock
An event that suddenly increases or decreases the amount of available goods
marginal benfit
An increase in price of producing one more unit of a good
Law of Demand
Economic point that states consumers buy more goods at a lower price
complement
Goods that are bought and used together
land, labor, capital factors of production
Groups of resources that are used to make all goods and services
minimum wage
.Lowest amount an employer can pay an employee
price ceiling
Maximum price that can be charged for a good or service
revenue
The amount of money a company receives from selling goods
Rationing
The controlled distribution of a scarce resource or service
price floor
The minimum price for a good or service
Equilibrium price and quality
The point of balance between price and quantity
Law of Supply
The tendency of manufacturers to offer more goods at a higher price
subsititution effect
When a price of a good increases, a consumer may purchase less and purchase other goods
Elacticity
When demand is relatively unresponsive to price or availability
excess demand
When quantity demanded is greater than quantity supplied
surplus
.When quantity supplied is greater than quantity demanded
black market
Where goods and services are sold illegally