demand: is the relationship between the quantity of s product that consumers are willing and able to purchase and the price
supply:is the relationship between the quantity of a product that producers are willing and able to provide and the price
law of demand: price goes up demand goes down, and when the price goes down demand goes up
law of supply: when the price goes down the supply produce goes down
scarcity: lack of resources
equilibrium:point there the supply and demand curves intersect
the major challenges of marketers is to find out what product people want and what price they are willing to pay

illegal pricing
price fixing: when relative businesses conspire to charge high prices
bait and switch: product that is advertised at a great price is "out of stock" then they are sold a higher priced product
price discrimination: when one entity is charged a higher price then another

pricing considerations
operating expenses: all costs associated with running your business
markup: the amount that is added to the cost of the item to cover operating expenses

pricing policies
price lines: distinct categories of merchandise based upon price, quality and features

variety of pricing strategies; promotions
loss-leader pricing: willingness to take a loss on the reduced prices of selected items in order to create more customer traffic

business cycle: (economic cycle) ups and downs of the economy

inflation: when prices for goods and services rise faster than consumer income

season cycles
shoulder periods: periods of moderate demand in between high season and off season