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Fluctuations in economic activity, including period of expansion, peak, recession, depression, trough, and recovery.
What is the Business Cycle
This occurs when quantity supplied exceeds the quantity demanded
What is Surplus
The lowest price someone is willing to accept for a product.
What is Supply Price.
A situation when economic conditions make it favorable to buyers versus sellers, giving buyers and advantage in price negotiations, usually due to excess supply versus demand
What is a Buyer's Market.
Financial rewards that encourage and motivate business and personal decisions
What is Economic Incentives
When the amount of demand of a product exceeds the amount being supplied.
What is the Excess Demand
The current prevailing prices that product can be purchased in the marketplace.
What is Market Price.
To limit the amount of a good or service that is distributed as a way of managing scarcity of resources.
What is Rationing
What is the Substitute Effect
Assumes that people will generally make choices based on their own personal preferences and desired outcomes.
What is the Rational Choice Theory
The stages a product moves through, including introduction, growth, maturity, and decline.
What is the Product Life Cycle
This strategy allows companies to respond quickly to a changing business environment.
The actual price where the quantity demanded equals the quantity supplied
What is the Equilibrium Price
The rivalry between companies selling similar products and services, competing to attract customers with limited dollars to spend.
What is Competition
When the amount of the supply of a product exceeds the amount being demanded.
What is Excess Supply
Also called Private Enterprise, is an economic system where production, wages, and prices are determined via the application of the law of supply and demand, with little or no government regulation
What is Free Market
The degree to which the demand for a product changes based on changes in the price of the product.
What is Price Elasticity
A method used to set a selling price (or exchange price) for a product, with the goal of establishing optimum perceived value for both seller and buyer
What is the Pricing Method
This occurs when the quantity demanded exceeds the quantity supplied
What is Shortage
The price of one product or service as compare to another, expressed as a ratio between the two prices
What is the Relative Price
This strategy intends to cover (recoup) the cost of goods sold and earn a desired profit level
What is the Profit-Oriented Pricing Strategy
The highest price someone is will to pay for a product
Demand Price
The amount of money a business thinks it should charge for its product or service.
Pricing
The price a product is actually sold for.
What is the Selling Price
This Strategy intends to grow sales and gain market share
What is the Sales-Oriented Pricing Strategy