In a capitalist economy‚ all the central problems are solved with the help of price mechanism. In such an economy‚ no individual or a firm deliberately tries to solve the central problems; all economic activities operate automatically and there is no conflict anywhere. The basic reason for all this is that price mechanism brings about co-ordination in various sectors of economy and in various economic activities. The important characteristic of such a system is that it is automatic and there
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trade practice is that which represents abuse of market power in the production and marketing of goods and services by eliminating potential competitors from market and taking advantage of the control over the market by charging unreasonably high prices‚ preventing or reducing competition‚ limiting technical development‚ deteriorating product quality or by adopting unfair ordeceptive trade practices. MRTP Act repealed and is replaced by the Competition Act‚ 2002‚ with effect from September
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Iron Ore Price Bubble Those who anticipated price bubbles made huge profits. But the key word is ANTECIPATE Therefore‚ the relevant question is “What is the NEXT price bubble?” If you dream of profiting from the next price bubble‚ you should take a closer look at iron ore‚ which is the mineral used to make steel After 3 years working in metals and mining for Goldman Sacks‚ I realized some characteristics that lead to price bubble in commodities I will give one example of metals that are
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ECON1102 SUMMER SCHOOL 2012/2013 SUBMISSION QUESTION 1: DUE: FRIDAY 21 DECEMBER‚ 2012 BY 5PM. (i) Explain the concept of the consumer price index (CPI) and explain how it is measured. What is the latest CPI figures in Australia (Sept 2012) and what were the main factors influencing the CPI movements in this quarter. (ii) Is the CPI an accurate measure of inflation? Explain the importance of inflation when calculating the real interest rate. (iii) What are the economic
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7-28-2013 ENC-220 Audra Sherwood Price Elasticity of Demand Analysis 1. Who is likely to be more affected by tax increases on cigarettes: all adults or young adults? Why? Cite elasticity of demand estimates from the article to support you answer. I think that all smokers are affected by any price increase in their brand of cigarette. But young adults are found to respond more to price change. Studies show that cigarette tax increase is the most effective way to achieve long-run
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There are some reasons that may affect the decrease of price elasticity of supply among the three districts. Theoretically‚ the land restriction and increase in the transaction cost will cause a negative effect on the elasticity through different channels. The insufficient land resources in Hong Kong will physically limit the housing supply‚ but the land sale system makes it even worse. The land sale system in Hong Kong restricted the supply of land by abandoning regular selling after 1998. There
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the market power to set the price of a homogeneous product. Because the conditions for perfect competition are strict‚ there are few if any perfectly competitive markets. Still‚ buyers and sellers in some auction-type markets‚ say for commodities or some financial assets‚ may approximate the concept. Perfect competition serves as a benchmark against which to measure real-life and imperfectly competitive markets. Price Discrimination | | Most businesses charge different prices to different groups
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Apple Price Cut Case 1. To what extent the iPhone pricing strategy is similar to the iPod pricing strategy? How do you explain that the iPod price cut did not lead to such a level of customers’ protest? Answer: Both iPhone and iPod have experienced a large amount of price cut in their product lifecycle. In this document‚ we can find that iPod was launched in October 2001. Tough relatively high priced for an MP3 player‚ it was hugely demanded and remains popular till date though there was
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STICKY PRICES AND THEIR MACROECONOMIC CONSEQUENCES To understand the economic fluctuations‚ many economists have focused attention on economic coordination problems. Normally‚ the price system efficiently coordinates what goes on in an economy even in a complex economy. The price system provides signals to firms as to who buys what‚ how much to produce‚ what resources to use‚ and from whom to buy. For example‚ if consumers decide to buy fresh fruit rather than chocolate‚ the price of fresh fruit
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The High Price of Higher Education In America’s society today‚ students are expected to follow the path of day care‚ grade school‚ middle school‚ high school and hopefully college. Growing up in America today‚ the importance of education is stressed starting at the earliest stages of development. In a world with a competitive job market and with citizens who want to make the most money that they can‚ a college education is key in success. For some students‚ financing college is not a problem
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