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Price Rigidity is a condition where one follows a decrease in price but not an increase in price. This is due to the ability of other firms to match prices with it and it often leads to a kinked demand curve.
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Define shareholders wealth?
A shareholder's wealth can be dependent on the stock price if they decide to sell it. It can also be earned in the form of dividends. Dividends are paid when a company makes a profit and decides to issue a dividend to shareholders instead of reinvesting the profit.
What happens when the market price is lower than the equilibrium price?
When the market price is lower than the equilibrium price the price of the product will continue to rise. The price will rise until it equal the equilibrium price.
Can you find price elasticity if there is no change in price?
There must be a change in the price to calculate the price elasticity. Elasticity depends on the changes in the demand of a good or service based on the change in the price of a good or service.
When is price ceiling non-binding?
Binding Versus Non-Binding price ceilingsA price ceiling can be set above or below the free-market equilibrium price. For a price ceiling to be effective, it must differ from the free market price. In the graph at right, the supply and demand curves intersect to determine the free-market quantity and price. The dashed line represents a price ceiling set above the free-market price, called a non-binding price ceiling. In this case, the ceiling has no practical effect. The government has mandated a maximum price, but the market price is established well below that.In contrast, the solid green line is a price ceiling set below the free market price, called a binding price ceiling. In this case, the price ceiling has a measurable impact on the market.
Disadvantages of price control?
One disadvantage of having price controls is the fact that it can possibly limit income. Price ceilings mean that the price can't go above the price ceiling, which could be detrimental to profits.
Define cost price and selling price?
define cost and selling price
Define purpose Scope of price?
nabilah
Define international management?
Define international management ? Bring out its benefits Price discrimination is indistinguishable from dumping? Discuss
Deffernce between New Keynesian macroeconomics and new classical macroeconomics in the main ideas?
the main argument between the two schools of thoughts is number one on the price and wage rigidity and secondly on the market clearing idea. new Keynesian economics believe in wage and price rigidity and non clearing (disequilibrium) market models. while the classical tend to disagree with these ideas and believe in wages and price flexibility and market clearing models.
What is a goodcheap snowboard you can get?
First off, define cheap. (Price range)
What is the price of one Day Acuvue Define?
Only US$33.00 per bo.
Define equilibrium price and name the mechanism for setting this price in a free-market system?
The equilibrium price refers to the price point at which supply and demand are equal. This price can be found by applying the three basic properties of equilibrium.
Can you define and calculatethe price elsticity of demand?
Price elasticity of demand is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price.
Define market equilibrium?
it is a condition of price stability,where the quantity demanded equal the quantity supplied.
Define change in demand?
Demand relies on popularity, price of related goods, population, and disposable income.
Is UCLA an expensive school?
well if you say that it is a good school and has a high price its not expensive but if you consider its price for a crappy school then sure its a high price so just try to define expensive better? OK?
Define supply curve?
It is a graphical depiction of the supply schedule that illustrates that relationship between the price of a good and the quantity supplied.
