Supply & Demand
the total amount of a specific good or service that is available to consumers
*what a producer is willing and able to to provide at a given price point*
Supply
a consumer's desire to purchase goods and services and willingness to pay a specific price for them
Demand
the amount that customers pay for product & services
Price
related businesses conspire to charge high prices
Price Fixing
Making Money =
Profit
Businesses that use resources to develop products and services
Producers
Who purchase products to satisfy their wants and needs
Consumers
All customers pay the same price for a product
One Price Policy
an individual, group, or business is charged a higher price than others purchasing the same product or service
Price Discrimination
The study of how goods and services are produced, distributed, and consumed
Economics
when the PRICE goes up, DEMAND goes
Down
What is the price at a demand of 10,000 (see graph)
$30
Customers can negotiate prices within a price range
Flexible Pricing Policy
advertised inexpensive product is out of stock and the salesperson tries to sell a more expensive item
Bait & Switch
A sold out concert to due to a seating capacity is an example of
Scarcity
when the PRICE goes up, SUPPLY goes
Up
when the PRICE goes down, SUPPLY goes ___
down
Pricing variations are based on geographic location
Geographic Pricing
Sales tied to events
Special Event Promotions:
Prices ending in odd numbers give the illusion of spending less ($7.99 vs. $8.00)
Odd-Even Pricing
_________ is where the supply and demand curves intersect. It represents the best quantity and price for goods and services
Equilibrium
When a popular team’s tickets are in high demand, and there are only a limited number of seats available in the stadium, what happens to the price of the tickets?
The price of the tickets will likely increase because there is high demand and limited supply
Distinct categories of merchandise based on price, quality, and features
Price Lines
Selling a printer for cheaper than it's worth and losing money, but having a high mark up on printer ink to make up for a lack of revenue is an example of
Loss-leader Pricing
Price discount is given if old merchandise is return to make the new purchase
Trade-in Allowance