Microeconomics Term Paper
Price Control | January 21
2011
| Price control if not properly managed could be disastrous to the economy. It maynot only lead to higher prices in the long-run, but can even disrupt an industry. If pricesare not allowed to vary in response to greater risk, cost of production, and increasing costof staying in business, not enough producers would be encouraged to supply the product. | A Term Paper |
B I B L I O G R A P H Y
Philippine Institute for Development Studies, Economic Issue of the Day Vol. X no.2 (March 2010), "The Janus face of price controls"
The Business Star, “DTI Price Monitoring Scheme Now Underway In All Provinces,” May 17, 1989, p.
12.
http://www.philstar.com/Article.aspx?articleid=538575 http://www.chanrobles.com/republicactno7581.htm http://www.bworldonline.com/Research/populareconomics.php?id=0157
Cement price control to create panic, says Holcim
By: Ma. Elisa P. Osorio (The Philippine Star)
“Price control is a draconian measure that will create more panic and will scare people into hoarding cement that will result in supply shortage,” Ed Sahagun senior vice president of Holcim Philippines.
The reaction came on the heels of the warning issued by the Department of Trade and Industry (DTI) that they will impose price control on cement if the market continues to experience cement shortage and overpricing.
“The DTI has conducted extensive market monitoring at the end of the year and the start of 2010. We found out that there has been tightness in supply and if ever it is available in retail it is overpriced,” Trade Secretary Peter B. Favila said.
During the market visits, the DTI has issued to retailers a total of 150 notice of violations (NOV) and 50 notice of no supply (NNS).
The suggested retail price of a 40 kg cement is P205 which was pegged during the period of Ondoy disaster. During the market visits, Favila noted that a retailer has sold cement at P270 per bag.
The reported overpricing was denied by
2011
| Price control if not properly managed could be disastrous to the economy. It maynot only lead to higher prices in the long-run, but can even disrupt an industry. If pricesare not allowed to vary in response to greater risk, cost of production, and increasing costof staying in business, not enough producers would be encouraged to supply the product. | A Term Paper |
B I B L I O G R A P H Y
Philippine Institute for Development Studies, Economic Issue of the Day Vol. X no.2 (March 2010), "The Janus face of price controls"
The Business Star, “DTI Price Monitoring Scheme Now Underway In All Provinces,” May 17, 1989, p.
12.
http://www.philstar.com/Article.aspx?articleid=538575 http://www.chanrobles.com/republicactno7581.htm http://www.bworldonline.com/Research/populareconomics.php?id=0157
Cement price control to create panic, says Holcim
By: Ma. Elisa P. Osorio (The Philippine Star)
“Price control is a draconian measure that will create more panic and will scare people into hoarding cement that will result in supply shortage,” Ed Sahagun senior vice president of Holcim Philippines.
The reaction came on the heels of the warning issued by the Department of Trade and Industry (DTI) that they will impose price control on cement if the market continues to experience cement shortage and overpricing.
“The DTI has conducted extensive market monitoring at the end of the year and the start of 2010. We found out that there has been tightness in supply and if ever it is available in retail it is overpriced,” Trade Secretary Peter B. Favila said.
During the market visits, the DTI has issued to retailers a total of 150 notice of violations (NOV) and 50 notice of no supply (NNS).
The suggested retail price of a 40 kg cement is P205 which was pegged during the period of Ondoy disaster. During the market visits, Favila noted that a retailer has sold cement at P270 per bag.
The reported overpricing was denied by