Search results
Results from the WOW.Com Content Network
In economics, the long-run is a theoretical concept in which all markets are in equilibrium, and all prices and quantities have fully adjusted and are in equilibrium. The long-run contrasts with the short-run, in which there are some constraints and markets are not fully in equilibrium. More specifically, in microeconomics there are no fixed ...
Price index. A price index ( plural: "price indices" or "price indexes") is a normalized average (typically a weighted average) of price relatives for a given class of goods or services in a given region, during a given interval of time. It is a statistic designed to help to compare how these price relatives, taken as a whole, differ between ...
Time preference. In economics, time preference (or time discounting, [ 1] delay discounting, temporal discounting, [ 2] long-term orientation[ 3]) is the current relative valuation placed on receiving a good or some cash at an earlier date compared with receiving it at a later date. [ 1]
The price mechanism is an economic model where price plays a key role in directing the activities of producers, consumers, and resource suppliers. An example of a price mechanism uses announced bid and ask prices. Generally speaking, when two parties wish to engage in trade, the purchaser will announce a price he is willing to pay (the bid ...
Dynamic pricing. Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, and variable pricing is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands. It usually entails raising prices during periods of peak demand and lowering ...
Although there is a small spread between these two values the law of one price applies (to each). No trader will sell the commodity at a lower price than the market maker's bid-level or buy at a higher price than the market maker's offer-level. [8] In either case moving away from the prevailing price would either leave no takers, or be charity.
The number of ideal prices used for calculations or signalling in the world vastly exceeds the number of real prices fetched. At any point in time, most economic goods and services in society are being owned or used, but not traded; nevertheless people are constantly extrapolating prices which would apply if they were traded in markets or if ...
A situation in which the supply of a good or service exceeds its demand within a particular market, often as a result of the current price being below the economic equilibrium. economic system. Also called an economic order. [155] A system of production, resource allocation, and distribution of goods and services within a society or a given ...