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Price gauging is good because it attracts suppliers to areas where there is limited or no supply of basic good. After hurricane Katrina hit Mississippi over 5 million people were living without power hence there was a high demand for generators. This would attract suppliers such as John who will want to maximize on profits since they will sell the generators at a high price. Due to the law of supply, this would have attracted more suppliers of generators to Mississippi who would benefit from the high prices at which the generators were being sold. Due to the high number of suppliers, the price of generators will eventually fall since suppliers will lower their prices due to the competition for them to gain more customers. This will result in the equilibrium price of the generators falling back to normal due to the forces of supply and
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No one wants to be known as the one who delivered the bad news. Although delivering bad news is not fun, someone at sometime in their life has to deliver bad news. Unfortunately in my situation, that bearer of bad news was me. I am the bearer of bad news.
That is; price control is a form of government intervention in the country’s economy whereby the government agency utilizes its law-making power to regulate the prices at which otherwise voluntary private exchanges may take place. The two principal forms of price control are price ceiling and price floor.
Berkshire owns a range of products including insurance, candy, newspaper publishing, home furnishings, and vacuum cleaners ("Berkshire Hathaway Inc."). Clearly these two companies have pursued an agenda of generating larger sales volumes, though each have taken different tracks.
The major reasons put forward for this situation are the rising global demand for oil particularly in economies like China and India which are seeing rapid growth in their economies, the production of oil growing at a slower pace and the reserves of oil being depleted.
Price is an important concept to microeconomics and it is one of the important variables that are considered in the allocation of resources for the operation of the business. When price is considered in terms of the allocation of resources then it is referred to in terms of the price theory.
Hence to establish the relationship between consumer's surplus and willingness to pay we have to go through the theory of cardinal utility and consumer's equilibrium in single commodity case.
In the above diagram the horizontal axis measures quantity in the vertical axis we measure nominal price and utility expressed in terms of money.
Innovative techniques should be employed to ensure fairness in pricing to minimize risk to the government (Cibinic, Nash & Nagle, 2006). This is by using contract information that is currently available in the market or historical. A
In this case, substitute goods generally refer to a pair of goods in which the consumers consider alternative. On the other hand, complementary goods are those that are used together; one item is usable only when the other item is
Price control law protects consumers from price gouging in times of shortages when inflation is probable. This is an argumentative essay discussing the price control law and the importance of protecting consumers against price
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