| A | B |
|---|
| rationing | a system under which a govenmental agency decides everyone's fair share |
| ration coupon | a ticket or receipt that entitles the holder to purchase a certain amount of the product |
| economic model | a set of assumptions that can be listed in a table, graph, or algebraically, to help analze and predict outcomes |
| market equilibrium | a situation in which prices are relatively stable, and the quantity of goods and services supplied is equal to the quantity demanded |
| surplus | a situation in which the quantity supplied is greater than the quantity demanded at a given price |
| shortage | a situation in which the quantity demanded is greater than the quantity supplied at a given price |
| equilibrium price | the price that clears the market in that there is neither a surplus nor a shortage of a product at the end of trading period |
| loss leader | an item specially priced below cost to attract customers |
| rebate | a partial refund of the original price of the product |
| price ceiling | the maximum legal price that can be charged for a good or service |
| minimum wage | the lowest legal wage that cne be paid to most workers |
| price floor | the lowest legal price that can be paid for a good or service |
| target prices | essentially floor prices or farm products |
| non-recourse loan | if the farmer is unable to repay the money he borowed to put in his crop faces no additional penalties other than forfeiting his crop to the government |
| deficiency payment | a check sent to farmers that makes up the difference between the actual market price and the target price for a crop |
