Graph Notes
Equilibrium- Supply curve and demand curve intersect. Point where all resources are being use efficiently
Shortage- QD>QS
Surplus- QS>QD
Price Floor- Government imposed price limit, on how low a price can be charged for a product
Price ceiling- Government imposed limit on how high a price is charged for a product.
Fixed Cost- A cost that cannot change. ex rent, insurance, mortgage
Variable Cost- Cost that fluctuate. Ex Gas, phone
Marginal Cost- Cost of producing one more unit of a good.
New TC- Old TC
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