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For instance, crossing a border to buy goods instead of making the same purchase from local shops. Alternatively a retail leakage can be referred to as a 'negative' Retail Trade Gap or a Surplus factor. Contradictorily a retail surplus means that the locality's trade area is securing the local market and attracting non-local customers. [2]
However, many see the concept of flexible prices as useful in the long-run analysis since prices are not stuck forever: market-clearing models describe the equilibrium economy gravitates towards. Therefore, many macro-economists feel that price flexibility is a reasonable assumption for studying long-run issues, such as growth in real GDP .
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The clean surplus accounting method provides elements of a forecasting model that yields price as a function of earnings, expected returns, and change in book value. [ 1 ] [ 2 ] [ 3 ] The theory's primary use is to estimate the value of a company's shares (instead of discounted dividend/cash flow approaches).
In economics, an excess supply, economic surplus [1] market surplus or briefly supply is a situation in which the quantity of a good or service supplied is more than the quantity demanded, [2] and the price is above the equilibrium level determined by supply and demand. That is, the quantity of the product that producers wish to sell exceeds ...
Producer surplus, or producers' surplus, is the amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for; this is roughly equal to profit (since producers are not normally willing to sell at a loss and are normally indifferent to selling at a break-even price).
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