Ch.+6.3

Ch. 6.3 Notes
 * Prices serve a total role in a free market economy
 * Prices helps move labor, and capital into the hands of producers, and finished goods into the hands of buyers
 * Prices provide a language for buyers and sellers
 * Without prices the supplier would have consistent and accurate way to measure demand for a product
 * Buyers and sellers alike look at prices to find information on a goods demans and supply
 * Supply shock-a sudden shortage of a good
 * Rationing- a system of allocating scarce goods and services using criteria other than price
 * Black market- a market in which goods are sold illegally
 * Spill over costs- costepod production that affect people who have no control over how much of a good is produced