1. Marketing Co-Op

2. the amount of goods producers (sellers) are willing and able to sell Supply: the amount of goods customers (buyers) are willing and able to buy Demand:

3. As price increases the amount producers are willing and able to produce increases P 2 P 3 P 1 Q 1Q 3Q 2 The arrows move in the same direction!!

4.  Cost of production  Number of producers (competition)  Disasters and other big events  Labor union demands  Technology and inventions  Prices of other products

5. As price increases the amount the customer is willing and able to pay decreases P 2 P 3 P 1 Q 1Q 3Q 2 The arrows move in different directions!!

6.  Tastes and preferences  Number of consumers  Consumer (market) expectations  Substitute goods  Promotion (sales, commercials, customer awareness)

7. The degree to which demand for a product is affected by price ElasticInelastic A change in price creates a change is demand A change is price has very little effect on demand

8. The point at which consumers will only buy so much of a given product, regardless of how low the price is

9.  Equilibrium: when supply and demand are equal  Shortage: when demand exceeds supply  Surplus: when supply exceeds demand

10. Equilibrium Surplus Shortage Supply Demand P1 P2 P3 Q1Q2Q3

11. Pennies and Paperclips

12. A rivalry between two or more businesses to attract scarce customer dollars

13.  Price: using prices to attract customers  Non-price: using anything other than the sale price of a product ◦ Ex: higher quality, new features, larger assortment  Monopoly: there is only one supplier of a product (there is no competition)

14.  Lower prices  Better quality products  New, improved products  Choice of where to buy  Wider product selection  More and better customer service