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A good that is purchased as a result of the purchase of a related good
A complement
The elasticity of a product for which you buy infinite amounts at the given price
Perfectly elastic demand
Demand for a product is very responsive to price changes
Elastic Demand
A merger among companies that provide similar products or services
Horizontal Merger
An economic model that illustrates opportunity costs
PPF production possibility frontier
When demand is in excess compared to supply
Shortage
When supply is in excess compared to demand
Surplus
When demand is equal to supply
Equilibrium
Price cannot be over the maximum
Price ceiling
This tax imposes the same tax percentage on individuals regardless of income and is seen as being regressive.
Flat or Proportional tax
A merger that involves companies in the supply chain for a product or service
Vertical Merger
A minimum price that is accepted
Price Floor
When demand is does not change easily to a change in price
Inelastic Demand
A merger of unrelated companies
Conglomerate
Reduction in the value of an capital due to wear and tear or being obsolete
Depreciation
The payment received by Land
Rent
