Chapter 12 Terminology

What is the list price?

• Published price of a product

• Actual price you pay for a product

• Manufacturer's suggested retail price

• Money that goes out of the business to pay for the things that a business buys

What is the market price?

• Published price of a product

• Actual price you pay for a product

• Manufacturer's suggested retail price

• Money that goes out of the business to pay for the things that a business buys

What does MSRP stand for?

• Published price of a product

• Actual price you pay for a product

• Manufacturer's suggested retail price

• Money that goes out of the business to pay for the things that a business buys

What are expenses in a business?

• Published price of a product

• Actual price you pay for a product

• Manufacturer's suggested retail price

• Money that goes out of the business to pay for the things that a business buys

What is the business cycle?

• Alternating periods of expansion and contraction in the economy

• Situation in which a group of competitors gets together and sets the price for a specific product

• Situation in which a company plays favourites by charging lower prices to some companies for the same products

• Demand that changes with price

What is price-fixing?

• Alternating periods of expansion and contraction in the economy

• Situation in which a group of competitors gets together and sets the price for a specific product

• Situation in which a company plays favourites by charging lower prices to some companies for the same products

• Demand that changes with price

What is price discrimination?

• Alternating periods of expansion and contraction in the economy

• Situation in which a group of competitors gets together and sets the price for a specific product

• Situation in which a company plays favourites by charging lower prices to some companies for the same products

• Demand that changes with price

What is elastic demand?

• Demand that changes with price

• Additional satisfaction you get when you use an additional unit of the same product

• As a consumer consumes more units of the same product, the marginal utility (satisfaction) from each unit goes down

• Demand that is not affected by price

What is marginal utility?

• Demand that changes with price

• Additional satisfaction you get when you use an additional unit of the same product

• As a consumer consumes more units of the same product, the marginal utility (satisfaction) from each unit goes down

• Demand that is not affected by price

What is the law of diminishing marginal utility?

• Demand that changes with price

• Additional satisfaction you get when you use an additional unit of the same product

• As a consumer consumes more units of the same product, the marginal utility (satisfaction) from each unit goes down

• Demand that is not affected by price