Group items tagged

The article discusses price controls (ceiling prices) as a remedy for rising inflation in certain Asian economies (all above 4 %). The ceiling price was employed on food prices that were the main cause for rising inflation. The price controls were an alternative to raising interest rates which would raise the value of the local currencies by attracting foreign capital. The article discusses the feasibility of price controls as short term vs long term solutions. It states that price controls reduce incentives and efficiency in the long run by not rewarding producers appropriately. Nevertheless, they are effective in this particular case since the rise in price of food (pork rose 60 %) was mainly attributed to supply irregularities. If the price rises were caused through excessive demand, then price controls would perhaps not be as beneficial in the short run since the likelihood of a black market developing/smuggling would be much higher.

Many people, especially people who can afford oil at the moment, complain of it being too expensive at $40 a barrel. However, economists say this is nothing compared to oil's future price. Some even say it is too cheap since its demand has increased dramatically while it can only be provided in a certain amount. By raising its price, it could lower the demand. At the Association for the Study of Peak Oil 's conference in Berlin, it was discussed about the consequences of oil's rising prices.

I agree with you. It is true many people do not value what they have. Most of the resources are consumed at the rich countries, and we still want more. Instead you´ll never hear a man who just have enough to feed his family complaining because rice is 6 cents more expensive, if he still can afford it.... sometimes we do not see it, but we are really ungrteful.

i agree with you as well Constance but when the price for oil will increase it will also cause a chain reaction that would increase prices on products as well. do you get my point ? ? if a person needs oil he wont be able to live without it lets take an example i am a villager who has a big valley where i gather potatoes like 20 tons. i need to transport them so when transportation price will increase i will have to increase price on potato . so you see what i mean it a little bit miscellaneous point

This article provides an interesting perspective into the fluctuation in price levels between different domestic routes in the US. As demand for a particular route goes up, so does price of airfare that serves that route. As a result, an increasing number of airlines allocate resources to serve that route, and as a result of competitive pressure, prices go down. This results in volatility of prices, and a constant shift in the allocation of resources based on price levels between routes. For instance, the route between Atlanta (ATL) to Las Vegas (LAS) is said to have 2,472,916 price changes. This reflects upon the popularity of this route for domestic travel within the US.

"Putting caps on prices is only a short-term solution" Asian countries, China, Malaysia, and the like, are reluctant to raise prices on fundamental goods such as food and petrol. This allows the people of the country to have access to cheap petrol and thus more motivation for actions which lead to economic growth using petrol. Although the price caps seem beneficial for the country, that is only true in the short run. In the long run, the price caps will increase consumption in the country, and thus increase the demand for more crude oil from abroad which will lead to a rise in global prices of crude oil. Thus, looking ahead, it is for their own sakes that Asian countries should cut down on their price controls on such goods.

If I understood rightly what the article talks about. It touches our lesson by two different ways: 1) A maximum price is put to the mutton exported from Australia in order to have more a less the same price as the national produced mutton. 2) During festival days, when demand increases on those typical resources of those days. Price ceiling is maintained by government in order to make prices not reach abusive by sellers.

The article discusses the price mechanism as a signal for allocation of resources in two markets - consumers goods and stock market. A rational perspective would assume that as demand rises, suppliers are attracted to the particular product as they see incentive for profit and thus supply extends and prices rise. This then has the opposite effect as since prices are high, demand contracts. This self-correcting mechanism is in place for the market of consumer goods, as the article discusses. Eventually, price will return to equilibrium. However, in the case of stocks, as prices of stocks rise, investors are more attracted to the stock as they see incentive for capital gain. Thus demand extends, contrary to the rational model observed in the market for consumer goods. Nevertheless, the article provides supports the notion that as demand rises, prices rise and more of that particular good/service is supplied to the market.

This article is a report on the state of burial prices in Hong Kong greatly affected by the lack of supply of room for the dead. For private burials, the costs can go well beyond $25,000!

this article shows the situation in today's Hong-Kong where supply curve has moved to the left because of an increase in prices and demand curve moved to the right, because demand has increased this is caused by a lack of room( supply), so a new equilibrium is now formed which i think will soon change because of a resource being scares which will increase price even higher

this article shows the situation in today's Hong-Kong where supply curve has moved to the left because of an increase in prices and demand curve moved to the right, because demand has increased this is caused by a lack of room( supply), so a new equilibrium is now formed which i think will soon change because of a resource being scares which will increase price even higher.

Rob Dickins, former major-label boss, has sugested to slash the price of CDs to 1 puond each so as to increase the damnd for that product. The main competition of the CD industry is music piracy and downloading it for free from the internet. Cutting down the price of CDs is not the solution because, however small the price might be, it would still be more expensive than downloading it for free. Secondly, reducing the price so drastically for such a product, other than it being an insult to producers and musicians, means a very high production cost, for very low retribution.

This article talks about how oil prices are starting to rise because of the lack of supply in France.

This article reflects the situation from which France is going through nowadays. In other words, the supply curve has suffered a change to the left, because prices has become higher. In the other hand, the demand curve has shifted to the right, because, the demand has increased due to the scarcity of this major resource that people use everyday.

This article talks about how pricing helps Apple, a tech corporation, to sell more products and become the no. 1 tech company in US by market capitalization.

This article discusses the prices of crude oil and what makes them change. Kent also talks about the current stability of crude oil prices and something called the "Ratcheting Effect". This article is very interesting because it pertains to very recent events and also vaguely to the oil spill by BP in the Gulf. Although it does contain some bias in certain aspects, some of the statements are very general and unbiased.

This report talks about how prices may increase due to the increase of demand, taking into account there is not a maximum price below the equilibrium point.

Prime Minister Commodore Voreqe Bainimarama has chosen to lower the price of food so as to allow the villagers of Fiji. Still the price was left high enough to let businesses a good profit. This is a perfect example of price roof that doesn't have negative ripercussions on the market

This article discusses the risks and benefits of a price control set on oil prices in typhoon-hit areas. There is quite an extensive discussion on why it is a bad or good idea.

in my article is vividly shown price control. it is connected to low South African electricity prices

This article talks about Indian government relaxing price controls of drugs. It now controls 74 bulk drugs, but this number is expected to halve under new policy. Currently, there are price controls on formulations with a 50% market share and annual turnover of 40million rupees. This figure will be relaxed to 250m.

The article (interview) exposes the posible reccession that the crisis at the araba world can carry, as everybody knows the oil is one of the main components of production, if it´s prices increase is possible LRAS will decrease or increase it´s prices.

This article warns economists that oil prices might well cause a recession. In just a month's time, oil prices have risen from 85 to 106$ a barrel. This article examines how that price rise might affect the economy.

This article talks about an increase in the price of gasoline due to a rally in the prices of oil and corn which are directedly involved in the making of gasoline. It also talks about how this will change because people are now starting to hold on to their money.

In my opinion this shows how resources are coming to an end as the raw material´s prices are rising