How the price of a factor of production is determined by the forces of demand and supply? The marginal productivity theory of factor pricing is Incomplete by itself. It suffers from many defects.
Distinguish between Rent and Price. Does rent enter in to price? Modern economists consider land from the individual point of view. For an individual the supply of land is not inelastic. He buys land to produce something only then rent being a part of cost of production determines price.
How is price determined under perfect competition? There was a controversy among earlier economists as to whether the supply of a good or the demand for it goes to determine price of a commodity under perfect competition.
1193 words free essay on the rising price of Gold. The price of gold continues to set new records with almost three times increase in last few years.
It is often quoted that monarchy is a merchantman, which sails well, but will sometimes strike on a rock and go to the bottom; a republic is a raft, which would never sink but your feet are always in the water.
In a capitalist economy, all the central problems are solved with the help of price mechanism. In such an economy, no individual or a firm deliberately tries to solve the central problems; all economic activities operate automatically and there is no conflict anywhere.
Under this method, the rate for material issues is determined by dividing the total of the periodic simple average prices of a given number of periods by the numbers of periods.
This method is like weighted average price method, except that the calculations of issue prices are made periodically (say, a month).
Market is the characteristic phenomenon of economic life. Price is a powerful regulator. Market in Economics refers to a group of buyers and sellers in sufficiently close contact with one another that exchange takes place among them. Market refers to a commodity.
As in most cases, price elasticity of demand is dependent upon a number of factors, of which the most important ones are the following. Generally speaking, a consumer can choose between several goods for satisfying a given want. Therefore, the demand for a good is affected not only by its own price but also by the prices of its substitutes.