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The practice of charging very low prices in order to avoid competition.

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When companies draw consumers with one thing and mislead them when they get there. Example: A business says a product is on sale but claims they're sold out when customers arrive, then offers a similar product for the original or higher price.

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An illegal practice where competing companies decide to settle on the same price and limit competition.

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An economic system where the economic resources are privately owned and decisions are made freely by individual owners.

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Competing with other businesses that sell substitute goods. Example: Butter and margarine.

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The rivalry between two or more businesses that produce similar goods or services. Example: Nike and Adidas.

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A price below the equilibrium, one that satisfies buyers but discourages sellers.

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A price above the equilibrium, one that encourages sellers while discouraging buyers.

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The price at which the quantity supplied and demanded are equal.

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The number of products or services available for sale or the amount that sellers are willing to sell at a specific price.

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The number of consumers willing to buy at a specified price.

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A social science whose goal is to distribute resources among alternative uses.

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Goods that are often used together. Example: Peanut butter and jam.

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A good that can easily be replaced with another. Example: Tea and coffee.

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Individuals or businesses that make a product.

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A person who buys goods and/or services. Also known as a customer.