| A | B |
|---|
| The process by which the market system allocates goods and services to consumers when quantity demanded exceds quantity supplied. | price rationing |
| A maximum price that sellers may charge for a good, usually set by the government. | price ceiling |
| A nonprice rationing mechanism that uses waiting in line as means of distributing goods and services. | queuing |
| Those who receive special treatment from dealers during crises. | favored customers |
| Tickets or coupons that entitle individual persons to purchase a certain amount of a given product per month. | ration coupons |
| A market in which illegal trading takes place at a market-determined prices. | black market |
| A general concept that can be used to quantify the response in one variable when another variable changes. | elasticity |
| The ratio of the percentage change in quantity demanded to the percentage change in price. | price elasticity of demand |
| Demand in which quantity demanded does not respond at all to a change in price. | perfectly inelastic demand |
| Demand that responds somewhat, but not a great deal, to changes in price. Inelastic demand always has a numerical value between zero and minus one. | inelastic demand |
| A demand relationship in which the percentage change in quantity of a product demanded is the same as the percentage change in price in absolute value (a demand elasticity of -1). | unitary elasticity |
| A demand relationship in which the percenatge change in quantity demanded is larger in absolute value than the percentage change in price (a demand elasticity with an absolute value greater than 1). | elastic demand |
| Demand in which quantity demanded drops to zero at the slightest increase in price. | perfectly elastic demand |
| A more precise way of calculating percentages using the value halfway between P1 and P2 for the base in calculating the percentage change in price, and the value halfway between Q1 and Q2 as the base for calculating the percentage change in quantity demanded. | midpoint formula |
| Measures the responsiveness of demand with respect to changes in income. | income elasticity of demand |
| A measure of the response of the quantity of one good demanded to the change in the price of another good. | cross-price elasticity of demand |
| A measure of the respone of quantity of a good supplied to a change in price of that good. Likely to be positive in output markets. | elasticity of supply |
| A measure of the response of labor.Can be positive or negative. | elasticity of labor supply |
