Ch+6.1


 * Ch 6.1 notes and questionsP

__Balancing the market__ __Disequilibrium__ __Government intervention__ __Price ceilings__ __Price floors__
 * equilibrium is the point of balance between price and the quantity
 * at equilibrium the market is stable
 * disequilibrium - occurs when quantity supplied is not equal to quantity demanded in a market
 * excess demand - occurs when quantity is more than quantity supplied
 * when the actual price in a market is below the equilibrium price, you have excess demand, because a low price encourages buyers and discourages sellers
 * excess supply- occurs when quantity supplied exceeds quantity demanded
 * price ceiling- a maximum price that can be legally charged for a good
 * price floor- a minimum price for a good or service
 * rent control was introduced was introduced to prevent inflation during a housing crisis in the earl 1940s
 * minmum wage- which sets a minimum price that an employer can pay a worker for an hour of labor

__questions__
 * 1) equilibrium is unique because its the price is adjust equal to market
 * 2) excess demand can lead into increase in price
 * 3) a price floor is the minimum price for a good and the price ceiling is the maximum price that can be legally charged for a good.
 * 4) rent control is used to control and prevent inflation.
 * 5) a.management and professional are jobs that would be least affected by change.B. service and transportation would be most affected by the new minimum wage .C. low payment or unemployment.