We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Markets Organize Economic Activity - Essay Example

Comments (0)
The answer is no. In most cases, this so-called price control set by the government often lead to shortages. Lets take a clear example: Government in developing country has set a price ceiling…
Download full paper
Markets Organize Economic Activity
Read TextPreview

Extract of sample
Markets Organize Economic Activity

Download file to see previous pages... Firstly, a price ceiling happens when prices of commodities and other services are held below the equilibrium, in connection, these prices are not allowed to rise for the benefit of the buyers and consumers. When sellers can possibly add few cents to the current price of bread while maintaining its saleability, the government would prohibit them to do so. Anyway, there are few tactics sellers have used to make money while price has been frozen to a certain level. Some of these tactics are baking low quality breads by not following the exact measurements of several ingredients. But, consumers cannot easily spot these changes. What they have in mind is the “amount” they will exchange for that commodity. The sellers cost-cutting method can be hidden by the low-priced bread. Nevertheless, even there would cost-cutting measures, the direct result of price ceiling is shortages. When everyone can afford to buy bread, there would occur a shortage of bread supply in the market. There are also instances that richer consumers would buy in excess of their regular consumptions.
Secondly, lets talk about the obvious connection of the shortage of bread production to long lines. When prices of commodities are set in a price level below the equilibrium, there are more consumers who are so eager to buy bread. Even its obvious that they have to spend time to wait there turns, they are always willing to fall in line. There are various factors why many people are willing to get starve in the corner standing in the queue, even they have the option to eat in the nearby fast foods where they can be served in less than 10 minutes – they want to save every cents they can because of the inflation. While almost all the prices of products and basic commodities went higher each year, most workers salaries remain the same. There are few announcement of wage increase, however, it cannot cover up the cost of the most upward movements of prices of the major daily needs. Its ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Economic and financial markets
In 1975 they relocated to 1912 Pike Avenue and operate out of this location even today. Starbucks Corporation is presently the world’s number one speciality coffee retailer. It has over 17000 outlets in 50 countries. However, the bulk of its outlets are in the USA (11000), Canada (1000), and the United Kingdom (700).
8 Pages(2000 words)Case Study
Empirical Evidence-Financial Systems and Economic Activity
This study is aimed towards reviewing such issues and providing empirical evidence along with presenting some new analyses of this evidence. This paper explains the implications for the economic policy of the consideration that the institutional structure might be inter-related with the type of activity.
15 Pages(3750 words)Essay
Entrepreneurship and Economic Growth
To create value, unmet needs and opportunities are identified and ways to meet these needs are developed. There is a strong link between entrepreneurship, innovation, and economic development. This link arises from the fact that less entrepreneurship means fewer innovations, which in turn business development negatively.
6 Pages(1500 words)Essay
Importance of institutional investors for financial markets
Institutional investment is an investment related to organized institutions. Such institutions are caretakers of others’ equities and private holding investments. The role of institutions is deliberate as they set a system of organizing, developing and managing respective funds.
8 Pages(2000 words)Essay
IKEA General international markets activity
a renowned furniture retailing company. The study has selected Indonesia as the venue for international operation for IKEA. At present, IKEA doesn’t have any business operation in Indonesia but the company has announced that it will enter Indonesian ready-to-assemble furniture market by establishing partnership with PT Hero Supermarket by 2014 (Cahyafitri, 2012).
12 Pages(3000 words)Essay
Financial Services and Markets
With a more or less similar objective of regulating the investment services across all member states of the European Union, Markets in Financial Instruments Directive (MiFID) has been introduced. While replacing the Investment Services Directive (ISD), MiFID proposes to achieve the objectives of protecting the investors in the EU as well as responding to changes and innovations in the securities market.
8 Pages(2000 words)Essay
Economic Trends of Global Markets
In December 2000, the Global Trends 2015 (GT 2015), a paper published by the National Intelligence Council (NIC) described a “networked global economy” primarily driven by rapid and largely unrestricted flows of information, ideas, cultural values, capital, goods and services, and people. However, GT 2015 cautioned that a resilient global economy will be contingent on avoiding several potential brakes to growth of future global markets.
4 Pages(1000 words)Essay
Global Economic Crisis
The three major tools exercise throughout economic render down are monetary, fiscal along with exchange rate gadgets, to motivate an uncertain economy. Within the monetary policy sphere, the central bank would diminish interest charge and lighten up statutory reserve necessities consequently that banks be able to lend additional, ensuing in improved customer expenses and investment spending which would enhance economic expansion.
5 Pages(1250 words)Essay
Economic Activity in Frace
This shows that France is a very rich country. As of the year 2013, the income per capita in France amounted to 44,099 dollars (Gofen and Blandine, 22). This is an indication that the poverty level in France is very low. Furthermore, as per the
1 Pages(250 words)Essay
Economic Activity about Crepe Restaurant in Japan
It is currently the largest creditor country (Flath, p. 13). The per capita GDP of japan was estimated to be $36,899, which was the 22nd highest in 2013. The country’s GDP is dependent on industry (27.5%), agriculture (1.2%) and services (71.4%). This means the
1 Pages(250 words)Essay
Let us find you another Essay on topic Markets Organize Economic Activity for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us