Questions tagged [price]
The price tag has no usage guidance.
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In the real world, who raises the price in a free market?
If I have a market for smartphones let's say and demand for this good increases then this would create a shortage ceteris paribus and as a response the price would rise, right? But who actually raises ...
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Why is the cost of opening loot box for virtual good on average higher than the good cost itself?
Consider games such as Team Fortress 2 or Counter Strike Global Offensive on steam, there we can obtain certain virtual goods only by means of opening "crates" through the usage of "...
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Inequality and effect on pricing
Suppose there’s an island that for whatever reason has a finite amount of US Dollars; 1000 residents live on the island and use this fixed amount of currency to exchange goods and services.
Suddenly, ...
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How Many Hours Do You Need To Work To Buy An Iphone?
I have often seen pictures like this - in different countries around the world, how many hours do you need to work before you can buy an Iphone:
My Question: Is there a generalization to this concept?...
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Aren’t all firms price-takers?
So I hear this distinction between price-taking firms and price-making firms in regards to perfect competition. Price-taking firms are firms that accept the price determined by supply and demand. But ...
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Price elasticity of demand/supply following tech change
Is the answer (b) ?
I found the two equilibrium prices before and after the change by doing Q^D = Qs1, Q^D = Qs2.
Before the change, I get for the supply side : P = 15 and Q = 5, giving me a price ...
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Fuel cost riddle
If
the price of fuel today is \$1 per litre.
I filled my car up for \$50 with fuel that cost \$0.50 per litre yesterday
the fuel price tomorrow in the future is unknown
I do not know when I intend to ...
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Why doesn't the government subsidize firms on the condition that they lower prices?
Lets pretend that all production is contingent on fixed cost capital, the good or service made from this capital is sold at a price that means that demand is below what the capital has the capacity to ...
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"Truck Transportation of Freight" would include tanker trucks that transport NGLs, correct? I'm looking at the Producer Price Index of transport
The producer price index I am referring to:
enter image description here
There are other categories as well, but I'm concerned specifically with "Truck Transportation of Freight":
enter ...
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Why we use geometric mean when calculating Fisher index?
I wasn't able to find an explanation as to why we use the geometric mean (contrary to, say, the arithmetic mean) of the Laspeyres index and The Paasche index when calculating the Fisher index. Could ...
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Why price always increase?
My question is why price of goods and services always increase
Is it a law like (entropy always increases) .
But in electronics price always decrease.
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Is this a valid price finding method?
Scenario:
To keep this question focussed: This is regarding a single buyer for a single, one off straightforward purchase (service or goods), with a handful of possible sellers.
Background:
It ...
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The number of relative prices without money
So recently I am reading a lot of monetary literature and this comes up when they talk about the unit of account function of money:
$$(n / 2)(n-1)$$
Can we prove this or where does it come from and ...
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How to formulate intra-day return?
So I have time series data on the bitcoin price. For each day there is an open price and a close price. In many papers they calculae the return like this:
$$ R_t = \Delta P / P_{t-1} = ln(P_t/P_{t-1})...
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What should a producer do in this scenario?
Let’s say a producer supplies 100 units of some good but consumers will only demand 100 units if the price is zero. For every dollar the producer charges per unit, 1 consumer is lost. So if he priced ...
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transition probabilities from a AR(1) stochastic process
I have a stochastic volatility model for commodity price which follows an AR(1) process:
ln(pt ) − m = ρ (ln(pt−1) − m) + exp(σt)ut ut ∼ IID(0, 1)
σt − μ = ρσ(σt−1 − μ) + ηεt εt ∼ IID(0, 1)
...
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Empirical relation between interest rate and stock market performance
Disclaimer: Originally I asked this question on the personal finance site (see here) where it was (rightfully) closed since it does not directly relate to personal finance but is rather a general ...
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confidence interval for standard deviation of bitcoin price
I am actually doing some research on bitcoin for my bachelor thesis. I have daily data on the price of bitcoin from here. I calculated with python:
...
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Why would lowering quantity supplied cause to quantity demanded to increase?
I am reading an article about price-takers vs. price-makers, and it says the following:
A Price Maker can alter the output of its product at any time to suit its needs for profit maximization. For ...
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Inflation adjustment: CPI less than one
I need help on how to adjust my figures by inflation.
I have two pieces of data. The first one is a company's nominal expenditures during the 2015-2020 period:
...
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Does any economic theory distinguishes "common bargaining power advantage" from "abusive bargaining power advantage"?
Let me give an example of what I mean by 'abusive bargaining power advantage':
People store and sell goods, amid fluctuations of demand and price, in order to make profit. And that's ok. But suppose ...
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Is usage of white colored paper so widespread due to economic factors?
Why is white paper so popular? Is it so because it's cheaper or because it's a widely accepted standard for color?
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Optimised Pricing with Static Price Data
If you have price data going back several years, but the price is constant, is there any way to work out the elasticity of demand (or dynamically optimise prices another way).
The sales volume is in ...
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Price Elasticity with real monthly data
Is it possible to calculate the Price elasticity based on the following set of data?
I tried with the formulas widely available, but looks like the results are not correct.
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Additivity of the Fisher price index for the same component
I have a dataset of yearly gross investment since 1970 in chained 2010-prices or "Fisher index prices". I want to depreciate each year's investment and add them up, however, reading about ...
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Is this intuition correction? [duplicate]
For simplicity sake, let’s assume I am the only supplier in a market and have the same goal of making profit as other firms do. Let’s say I produce 300 units of some good. I look at the demand ...
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Find building material cost (USD)
Cannot find the best way to estimate the cost of
concrete(USD/cy),
rebar(USD/ton),
Structural Steel(USD/ton)
for Monterrey Mexico. I have tried to check (INEGI)which is run by the Mexican government ...
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Using price elasticity of demand to optimize price increases
I want to share some context with you I am working for a pharmaceutical company and the business side needed to update the price for some products once a year. So I thought to develop a model to ...
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How to convert unchained nominal US personal income values to 2012 chained dollars
I have 1980-2021 data for US personal income (nominal, unchained) and I need to convert all those years to chained 2012 dollars, and then convert it from nominal to real.
I looked up the formulas and ...
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CES price index with heterogeneous productivity
When there is a distribution of productivity, so that different firms have different sale shares, the aggregate CES price index has shares as weights?
References to papers are welcomed.
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A question on Marx' "Value, price and profit"
In his lecture Value, price and profit Karl Marx argues that profit is made by capitalists by (i) selling commodities for their real price (= real value expressed in money), (ii) paying the workers (...
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Food data from North African nations
I'm curious about the effect of the Russian war on food prices (specifically grain or wheat) in North Africa. Those countries tend to be dependent on both Russia and Ukraine for much of the much of ...
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Forecasting prices vs GDP
I heard a lecturer saying predicting prices is easier than predicting fundamentals (eg. GDP). I assume that's because prices are usually non-stationary? Does nonstationarity makes series more ...
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Economy Grade 12: Demand, Offer, Price of the Market, how to solve the exercise?
The Egyptian market, an increase in the price of chestnuts has been accompanied by an increase in the areas planted with chestnuts and, as a consequence, also with an increase in the quantities ...
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Contractionary monetary policy to tame inflation. Paradox?
One of the consequences caused by high inflation is lower economic growth.
The central bank, by contractionary monetary policy, increases interest rates in order to decrease aggregate demand and lower ...
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Relative Importance Weights of USA CPI items
So for example in this release Table 2. Consumer Price Index for All Urban Consumers (CPI-U): U. S. city average, by detailed expenditure category, the Relative importance weights are stated.
Now I ...
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What are the effects of discount retailers on the suppliers' economics?
The ACTION retail store is very popular in Europe and usually provides good but cheap quality goods (as people say).
The cheap prices are guaranteed that the bulk part of the store goods is made in ...
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Real world price elasticity when making pricing decisions
This is my first time trying to calculate price elasticity and put it to work in a real world situation. Let me state my problem first:
I work at a company (let’s call it a store) that was selling a ...
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Perception of value between different currencies
So let's say I am going to sell a game and I'm trying to come up with a fair price.
The thing is, I am from Brazil and I'm selling in an online platform where most products are priced in dollars.
The ...
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Why have gas prices gone up so much recently? [duplicate]
Gas prices are soaring. Russia cant have this much influence on the world economy, or can it? Maybe it is due to a post COVID recession?
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Can increasing oil prices cause decreasing automobile prices?
oil prices are increasing recently due to war and some other reasons. Also i live in a country with exchange rate of 17 againist US Dollars and its getting worse day by day. i drive an old car , ...
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Is P > AC under monopoly?
I would like to know why price is greater than average total cost under monopoly. In textbooks, average cost is drawn under monopoly price. However, if the fixed cost is so large, can monopoly get ...
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How much of gas prices can be tied to refinery profit margins?
US President Biden wrote a letter (widely reported, but I can't find an official' copy; see here for full text) blaming fat refinery profit margins for the recent (January-June) rise in gasoline ...
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Calculating profit from price and cost
For a given item, if we know that the equilibrium price is 400 and the cost of manufacturing quantity $x$ of the item is $2x^3+900$, then how can I find the profit?
My initial thoughts are that this ...
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Market price of interest rate risk under the CIR model
My goal is to find the market price of risk associated with the interest rate under the CIR model whose stochastic differential equation under the physical measure is given:
\begin{eqnarray}\label{...
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Vector meaning within economics
So what does a vector mean in economics, in layman's terms?
For example,
https://en.wikipedia.org/wiki/Hicksian_demand_function
where $h(p,\bar{u})$ is the Hicksian demand function, or commodity ...
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Is there a formula for increasing the price whenever scarcity increases?
If this is not the right place to ask this, I'd appreciate it if you could direct me to the right one, if there is one.
I have a fixed set of items for sale
These items are unique, i.e. they are not ...
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How should we understand the surplus triangle in the context of a price floor?
In the context of the standard supply and demand diagram, is there any economic interpretation of a triangle showing the surplus/excess supply that results from a price floor set above the market ...
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Why does the wage-price spiral of inflation exist, why do high wages/high prices not balance out?
Today's NYTimes newsletter wrote the below
Consider wages: If people expect high inflation, they will demand higher pay. But to pay higher wages, employers are likely to pass that cost to consumers ...
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Real effect of monetary policy
In the article The State of New Keynesian Economics: A Partial Assessment, Gali says the following about the monetary policy in DSGE models: "Exogenous changes in monetary policy have nontrivial ...
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