Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

Back Matter Appendix A: Economics

Fundamentals

© The McGraw−Hill

Companies, 2002

Appendix A

Economics

Fundamentals

When You Finish This Appendix, You Should

1.Understand the “law of diminishing

demand.”

2.Understand demand and supply curves

and how they set the size of a market and its

price level.

3.Know about elasticity of demand and

supply.

4.Know why demand elasticity can be

affected by availability of substitutes.

5.Know the different kinds of competitive

situations and understand why they are

important to marketing managers.

6.Recognize the important new terms

(shown in red).