epf unit 6

Antitrust Law

Laws designed to prevent anti-competitive practices like monopolies and promote fair competition in the market.

Direct Competition

Rivalry between businesses offering similar products or services to the same customers.

Complementary Goods

Products often used together, where demand for one increases the demand for the other.

Elastic Price

A situation where a small change in price leads to a significant change in the quantity demanded or supplied.

Elastic Supply

When the quantity supplied changes significantly in response to a change in price.

Incentive

A reward or punishment that motivates people to act in certain ways.

Indirect Competition

Rivalry between businesses that fulfill the same need but with different products or services.

Inelastic Price

A situation where a change in price has little effect on the quantity demanded or supplied.

Inelastic Supply

When the quantity supplied is relatively unresponsive to changes in price.

Law of Diminishing Marginal Utility

The principle that as a person consumes more of a good, the additional satisfaction from each extra unit decreases.

Living Wage

A wage high enough to meet basic needs, such as food, housing, and healthcare, for an individual or family.

Minimum Wage

The lowest legal hourly wage that employers can pay their workers.

Monopoly

A market structure where a single company dominates, often leading to higher prices and less innovation.

Oligopoly

A market dominated by a few large firms, often leading to limited competition.

Perfect Competition

A theoretical market structure where many firms sell identical products, and no single firm can influence the market price.

Shortage

A situation where the quantity demanded exceeds the quantity supplied at a given price.

Price Floor

A minimum price set by the government, above the equilibrium price.

Price Ceiling

A maximum price set by the government, below the equilibrium price.

Subsidy

A government payment that supports businesses or individuals to encourage production or consumption of certain goods.

Supplementary Goods

Products that can replace each other, where an increase in the price of one increases demand for the other.

Surplus

A situation where the quantity supplied exceeds the quantity demanded at a given price.