If consumers were willing to pay the high prices for these produces the market will become competitive and the business will start making different strategies to allure consumers in their direction. This competition will start bringing the prices of the produces down, but it is important that business understand that they need to set up a line before bringing the price too low and hurting the market permanently. Because some businesses have been careless about this, other businesses have suffered and they have gone…
Petrol is one of the most demanded products on earth. Because of this, not only the petrol prices are…
With all the commotion going on in the Middle East and the ever increasing demand for Oil by countries such as China and the U.S it is very easy to see why price of crude oil and gasoline keeps climbing.…
Coffee prices have risen for several reasons. The main causes are because coffee farmers are increasing their expenses in attempt to produce more coffee. Some circumstances that can cause this are growing more cocoa…
an increase in the price level raises the interest rate and chokes off government spending.…
With demand rising, the price of a particular item will usually go up. This means the…
* Economy-wide price increases caused by ever-increasing amounts of currency chasing a constant supply of goods are rare, as commodity supply for monetary use is limited by the available commodity. High levels of inflation under a commodity back standard are usually seen only when warfare destroys a large part of the economy, reducing the production of goods, or when a major new source of commodity becomes available.…
There are different ways the government in a developing country wants to protect consumers from conditions that could make necessary merchandises out-of-the-way. One of the things is price ceiling, which a government-forced limit on the price charged for a product. Price ceiling is a situation when the price charged is more than or less than the equilibrium price determined by market forces of demand and supply. Though, a price ceiling can cause problems if forced for a long period without controlled limits. Misuse occurs when a government accidentally priced a price as too high when the real problem is that the supply is too low. Price ceilings can produce negative results when the correct solution would have been to increase supply. It can introduce a black market, it can creates a persistent shortage, decreases in investment, or price on the black market ends up higher than the equilibrium price.…
company is competing with others in the market, it cannot afford to increase it’s prices without…
Inflation has also increased in the long term as the economy can no longer produce enough to keep up with demand…
It is based on the rising price of good and services and falling purchasing power. This…
The main factor that I will focus on in this price shift is the weather. That is because the weather is one of the most important factors when it comes to agriculture. As you can see in the diagram above; when the supply decreases there will be a lack of food (shortage) which will result in enormous price risings. But one important thing to notice is that the demand is slightly decreased. This is because food is inelastic. What inelasticity means is: “When a price change has no effect on the supply and demand of a good or service, it is considered perfectly inelastic. An example of perfectly inelastic demand would be a life saving drug that people will pay any price to obtain. Even if the price of the drug were to increase dramatically, the quantity demanded would remain the same” [1].…
Finally, the government is failing yet again to control the level of inflation, as it is currently high, at 5%. This is because many commodities went up in price, such as oil. This…
In my point of view, Another reason for increasing the commodity prices is speculator speculating on commodity and they have make the heavy exposure on it due to uncertain economic environment .…
Nepal is a landlocked country in South Asia, between China and India. Although strategically placed between two large well-known countries, Nepal happens to be one of the poorest countries in the world. There are over 29 million people inhabiting the country today, and one third of which live under the poverty line. Nepal has a GDP per capita of 1,200 dollars. The mainstay of the economy is agriculture, and their main import and export partners are China and India. The Nepali government is categorized as a federal democratic republic (CIA World Factbook). At this point in time, the country is currently unstable. There was a civil war for ten years, from 1996 to 2006. Nepal is still recovering, and occasionally has to deal with the Maoist rebels who try to overthrow the government (BBC News: Nepal Leaders). Additionally, the literacy rate is 63%, and Nepalese people go to school for about 9 years throughout their lifetime. On average, a Nepalese person is said to live about 67 years, ranking Nepal’s life expectancy rate in the bottom lower half division compared to the rest of the world (CIA World Factbook).…