Tuesday, August 24, 2010

Do sellers always have total control over price?

no. Depend from marketDo sellers always have total control over price?
yes, they do haveDo sellers always have total control over price?
You keep asking this same question. Why?
What sellers. gasoline, food or anything?
depends on the type of market, and whether its free or not. in the free market, theres perfect competiton (price takers), monopolistic, oligopoly, and monopoly. perfect competitors dont have any control over price. they are clusters of real small firms with standardized products, or homogenous products, and cant influence the price, so they cant engage in price competition
Sellers dont have always a total control over their prices because there's a time that the product that they buy over of the estimated price.
No. Certain products are supplied by manufacturers with the stipulation that there is a minimum price they cannot go below.





In other cases, some prices of essential products such as bread, rice or eggs are fixed (subsidized) by the government to help price stability. This may also apply to essential utilities, such as electricity, who cannot change their charges without government approval.
No. Customer demand has a huge affect on price. Classic supply and demand.





Consider what happens when buying a popular car, the dealer may mark it up above list price, because they can. They will increase it more it people keep buying it. WHen the car fails to sell, the price may drop all the way to cost or below to relieve inventory. Customer demand....

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