A market in which goods or services are bought and sold illegally: Black Market. The price where the quantity demanded and the quantity supplied are equal. The price where neither shortages nor surpluses exist: Equilibrium . A legally established maximum price for a good or service: Price Ceiling. Any legally set price for a good or service: Price Control. The amount by which the quantity demanded of a good or service exceeds the quantity supplied at a given price: Shortage. The amount by which the quantity supplied exceeds the quantity demanded at a given price: Surplus. A legally established minimum price for a good or service: Price Floor. Price ceilings cause shortages : when the maximum price is set below equilibrium. If a price ceiling is set above equilibrium: the market will control the price of gas.. When there are problems with supply, demand, or price: the market will fix those problems on its own.. Our policy should be focused on keeping the ___________ happy: voters. With a price ceiling below equilibrium we can not increase the price to increase production to solve the shortage problem, but we can: encourage users to use less. Adam Smith encourages a market economy to limit the role of the government, because when the government interferes in the economy there is a negative impact on: growth. When price goes up demand : goes down. When price goes down supply: goes down. Price controls make the economy more : fair.. Market controlled prices make the economy more: efficient.. Would you like a free point on this quiz: . Mr. Velasquez is: the best economics teacher I have ever had.