SEM4e Chapter 8 Economics

Individuals who purchase products to satisfy their needs and wants

Involves reducing the price of a product below the store's cost to create more customer traffic

Refers to the ups and downs of the economy; also known as the economic cycle

The point at which the supply and demand curves intersect.

Occurs when an individual, group, charged a higher price than others purchasing same product

Distinct categories of merchandise based on price, quality, and features

Allows customers to negotiate prices

A period of moderate demand

Examples: BOGO, percent-off sale, no interest for 12 months

Amount that is added to cost of a product to cover operating expenses and to allow for a profit

Occurs when prices for goods and services rise faster than consumer income

When price goes up, supply produced goes up; when price goes down, supply produced goes down

Occurs when an advertised low-priced product 'out of stock', try to sell higher-priced item

Highest point of growth in the economy

Made up of customer attitudes, lifestyles and opinions

Occurs when there is a limited amount of resources needed to produce & distribute goods

Enacted to avoid monopolies

All of the costs associated with running a business in addition to the cost of the merchandise

Occurs when related businesses conspire to charge high prices

When the price goes up, demand goes down; when the price goes down, demand goes up