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Consistent theory of price.
The consistent theory of price is pretty simple. It says that the actual market price of a good is determined by bargain between the buyer and the seller. The price may be settled anywhere between the floor and the ceiling of the core.
Consistent theory of price distinguishes four successive phases of price. First, it stats with the shadow price of an individual who can produce two alternative goods under subsistence. The marginal rate of substitution between the two goods, both in terms of production and in terms of consumption provides the shadow price. Secondly, the objective or barter price is settled by bargain between the buyer and the seller. Thirdly, a competitive price occurs when there are many buyers and many sellers, effectively narrowing the price core. Finally, a consistent long term price emerges after all adjustments in related complements and substitutes have occurs so that the price become stable around an equilibrium with no tendency to depart from it, but with all tendency to return to it after any change in demands or supplies.
Sajib Saha.
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∙ 12y ago
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What is the Difference between price theory and income theory?
Price theory can be referred to as Micro economics and income as Macro.
Who developed the theory of price?
Marshal
Scope of micro and macro economics?
theory of income and employment: theory of general price level and inflation theory of economics macro theory of distribution' theory of international trade
What are the necessary condtions for a firm to practice price discrimination?
There must be a constant and there must be a consistent price differential for that constant. IE, by age, sex, religion, ethnicity, etc.
Which is most consistent with the law of demand?
An increase in the price of heating oil causes a decrease in the quantity of heating oil demanded.
What must a scientific theory have to be valid?
when it is consistent with observation
Did the galactic cluster support the big bang theory?
The existence of galactic clusters is consistent with the Big Bang although it would be equally consistent with the alternative Steady State theory.
What is the Difference between price theory and income theory?
Price theory can be referred to as Micro economics and income as Macro.
How did the values identified in John Locke's Social Contract Theory become consistent with the criminal justice system?
How did the values identified in John Locke's Social Contract Theory become consistent with the criminal justice system?
When an emergent theory becomes a consistent and recurring source of research and becomes comprehensive and widely applied it has become what theory?
grand
The theory of dual federalism is most consistent with the concept of?
layer cake federalism
Is the theory of human evolution is the only theory about how humans developed?
The only theory. The theory that explains the facts of human evolution and is internally consistent, plus supported by massive amounts of evidence.
The theory of human evolution is the only theory about how humans developed?
The only theory. The theory that explains the facts of human evolution and is internally consistent, plus supported by massive amounts of evidence.
Evolution is concidered to be a?
Evolution is a scientific theory. A theory is consistent with all known laws of physics and satisfactorily explains all confirmed observations.
Why is the process of evolution consistent with a particulate theory of inheritance rather than a blending theory of inheritance?
well what HAPPEN THAT UR FACE IN BUTUS
Characteristics of scientific theory?
A scientific theory explains some observed phenomenon, it makes testable predictions, it is consistent with other scientific and mathematical knowledge.
Who develop the theory price?
Marshal
