The importance of price in the modern economic system not be overemphasized. However‚ to set the right price for any commodity or service‚ some parameters or determinants come to play. Among the determinants of factoring price are:- • Tender • Sales by Auction • Haggling etc‚ and these are discussed below. 1. Interaction of the forces of Demand and Supply:- In a perfectly competitive market or what is sometimes referred to as a free market economy‚ prices are determined by
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Content Page(s) 1.a Effects of government policy that sets price controls on the sale of some goods 1.b Effects of government policy that subsidises the costs of goods to consumers 2 Evidence of maximum price controls in Venezuela 3 Costs and benefits of government regulation of prices in the short and long run 1. Using a basic demand and supply model‚ explain the effects of a government policy that: a) Sets maximum price controls on the sale of some goods Market is defined as
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Price Theory and Applications‚ Seventh Edition Steven E. Landsburg VP/Editorial Director: Jack W. Calhoun Editor-in-Chief: Alex von Rosenberg Senior Acquisitions Editor: Steve Scoble Developmental Editor: Joanne Vickers Ohlinger Publishing Services Marketing Manager: Brian Joyner Marketing Communications Manager: Sarah Greber Content Project Manager: Amy Hackett Manager‚ Editorial Media: John Barans Technology Project Manager: Deepak Kumar Senior Manufacturing Coordinator: Sandee Milewski Production
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Assignment Eco 101 1. a) Briefly explain the factors that determine the price elasticities of demand and supply. b) The accompanying table presents the prices and associated demand quantities of ready-made garments of Bangladesh at different world incomes. Price of RMG Quantity demanded when Quantity demanded when world GDP is $ 65 trillion world GDP is $ 70 trillion $10 500‚000 800
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COMPUTRON INC. CASE I. Problem Identification: What bid price should Computron Inc. set‚ so that the Computron can achieve management’s profits target‚ match the customer’s requirement and be competitive with respect to the competitors? II. Alternatives: 1) Bid Price: $ 746‚880.00 within 20% offered by Digitex pricing of $ 622‚400. - Will sell less than factory cost of $ 768‚000‚ hence no profit and reduces cash flow required for future investments. - Computron will lose premium quality
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THE ETHICS OF PRICE GOUGING Matt Zwolinski Abstract: Price gouging occurs when‚ in the wake of an emergency‚ sellers of a certain necessary goods sharply raise their prices beyond the level needed to cover increased costs. Most people think that price gouging is immoral‚ and most states have laws rendering the practice a civil or criminal offense. The purpose of this paper is to explore some of the philosophic issues surrounding price gouging‚ and to argue that the common moral condemnation
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he government on Wednesday decided to raise petrol prices by Rs 5 per litre and diesel by Rs 3 per litre that will result in freight charges going up. Currently‚ freight charges are about Rs 1.40 per tonne per km with an average of about 450-500 km for a company normally. “The fuel price hike will have a cascading impact on all input costs. Cement prices will be impacted by about Rs 3-4 per 50 kg bag‚ and if we are not able to pass on the hike‚ it will definitely impact our margins‚” said KC Birla
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Fuel Prices and its Effect on the U.S. Economy ACC 202-02 Managerial Accounting Professor Jackie Lewis North Carolina Wesleyan University High Fuel Prices and its Effect on the U.S. Economy The United States economy as a whole has been rapidly dwindling down of late‚ from its all time high marks in the late 1990’s and early 2000’s. Many Americans believe that the cause for this large downswing in the economy is due to the fact of the cost that
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Chapter Six Businesses and Their Costs Study Questions: 1. Explain the difference between a plant‚ a firm‚ and an industry. Plant – establishments such as a factory‚ farm‚ mine or store. Firm – an organization that employs resources to produce goods/services for profit. Industry – group of firms that produce the same or similar products. 2. State the advantages and disadvantages of the corporate form of business. Advantages – most effective form of
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Chapter 4: Costs and Cost Minimization Multiple Choice 1. Suppose you are a star basketball player at a major university in your sophomore year. You are sought after by several NBA teams. Which of the following choices best characterizes your opportunity cost if you choose to drop out of college and enter the NBA? a) The value of your college scholarship that you have given up. b) The skills that two more years of playing at your college would have given you along with their additional value
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