| A | B |
|---|
| Law of Demand | When the price goes up the demand goes down and when the price goes down the demand goes up |
| Law of Supply | When the price goes up the supply produced goes up, and when the price goes down the supply produced goes down |
| Scarcity | The lack of resources |
| Equilibrium | The point where the supply and demand curves intersect |
| Price Fixing | Occurs when related businesses conspire to charge high prices, this is an illegal practice in the United States |
| Bait and Switch | Occurs when a product that is advertised at a great price is "out of stock" and a salesperson tries to sell the consumer a higher priced alternative |
| Price Discrimination | Occurs when one individual, group, or business is charged a higher price than others purchasing the same product or service |
| Operating Expenses | all the costs associated with running your business |
| Markup | The amount that is added to the cost of an item for sale to cover operating expenses and allow for profit |
| Price Lines | distinct categories of merchandise based upon price, quality, and features |
| Loss-Leader Pricing | the willingness to take a loss on the reduced prices of selected items in order to create more customer traffic |
| Business Cycle | also referred to as the economic cycle, refers to the ups and downs of the economy |
| Inflation | Occurs when prices for goods and services rise faster than consumer income |
| Shoulder Periods | Periods of Moderate Demand |
