NOTES (1/16/15)- SURPLUS & SHORTAGE

• Surplus: QS > QD
• Shortage: QD > QS 
• Equilibrium: point at which supply and demand intersect; resources are used efficiently
• Disequilibrium: resources are not used efficiently and not intersecting
• Price Ceiling: government imposed price control on how high a price can be changed for a product/service
• Ex. rent control
• Price Floor: government imposed price control on how low someone can charge for a product/service
• Ex. minimum wage