Definitions hide and write on The Market
Word / Term
Law of demnd
Your definition
Correct definition
As the price rises the
quantity demanded falls
Demerit good
Goods that have been
deemed harmful e.g.
tobacco
Merit good
Goods that have been
deemed beneficial e.g.
medicine
Black market
The illegal trade /
exchange of goods and
services
Market
Firm
A place or situation where
buyers and sellers interact
to exchange goods or
services
A single seller of a good or
service
Industry
All sellers of the same
good or service
Market
demand
The sum of all the demand
of all the individual
consumers
Market supply
Market
equilibrium
Surplus
The sum of all the supply
of all the individual
producers
A price at which the
quantity demanded is
equal to the quantity
supplied
The quantity demanded is
less than the quantity
supplied
Word / Term
Disequilibrium
Caveat emptor
Price minimum
(price floor)
Subsidy
Tariff
Your definition
Correct definition
A price at which the
quantity demanded is not
equal to the quantity
supplied
Buyer beware, take care
when buying goods and
services.
A law preventing the price
from falling below a
certain level
A payment from the
government to producers
to lower the cost of
production.
A tax placed on imports
that makes them more
expensive
Quota
A limit on the amount of a
good that can be imported
Non Market
Satisfying needs and wants
without the use of money.
Transfer
payments
Government
spending
Shortage
Government payment of
benefits to those without
work e.g. unemployment
benefit
All government payments
including transfers,
payments for schools,
hospitals etc.
The quantity demanded is
greater than the quantity
supplied
A law that prevents the
price from rising above a
certain level
Price
maximum
(Price ceiling)
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