Questions tagged [price-level]
The price-level tag has no usage guidance.
6
questions
5
votes
3answers
1k views
Price Elasticity of Demand for Positive Price Increases
What does it mean when the price elasticity of demand %Qd/%P is greater than one? Typically I hear that it means the demand is elastic since if, say, the price decreases by 1% the demand for the ...
27
votes
4answers
3k views
From an economics perspective, what are the ramifications of a currency with fixed money supply?
I'm thinking specifically of bitcoins.
What are the pros and cons of having a fixed number of coins, as opposed to more "normal" currencies? Would the currency have no inflation?
3
votes
2answers
462 views
Why doesn't the price of gold drop as mining occurs that produces more gold?
According to my common knowledge, the price should drop when supply increases. Why doesn't the price of gold drop slowly as more gold is produced from mining?
7
votes
3answers
704 views
What is the impact of fracking on oil prices?
I read an article about the recent fall of gas prices in the US claiming that the fall in gas prices was due to the expansion of fracking within the US. The article said that, over the past few ...
7
votes
5answers
3k views
Does Inflation Make Money Eventually Worthless?
I used this calculator: http://www.buyupside.com/calculators/inflationjan08.htm
to estimate the future worth of 100 dollars in 100 years at 2% inflation. Does this really mean that a decent meal at a ...
2
votes
2answers
156 views
Why are imported Chinese products in India cheaper than those locally produced?
Why an imported Chinese product in India is cheaper compared to a locally manufactured item?
