Marketing Chapter 3

The point where supply and demand for a product or service are equal is called market price.

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Individuals who purchase products and services to satisfy needs are producers.

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The United States has many characteristics of a free economy.

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If a need or want is particularly important or strong, a consumer might be willing to spend more money to satisfy

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If a business operating as a monopoly is unregulated by the government, it can charge any price it chooses. The

consumer either pays the price set by the business or goes without the product.

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The law of supply states that when the price of a product is increased, less will be supplied; when the price is

decreased, more will be supplied.

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Products that provide great satisfaction have a higher economic utility, whereas those providing less satisfaction

have a lower utility.

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Unlimited consumer needs and wants, combined with unlimited resources, produce scarcity.

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The demand curve for businesses in monopolistic competition falls somewhere between that of pure competition

and monopoly.

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If a very large amount of product is available, consumers will usually place a higher value on it.

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