Price Elasticity Of Demand

Price Elasticity of DemandThe Prices of Consumer Goods Hold Steady , Indicating That Inflation Is at Bay word reports that consumer goods prices remained unchanged during February despite the presence of the stinting stimulus package It also states that costs increased by 0 .1 in the same month , with new and enforce car prices increasing by 0 .4 and 0 .7 respectively . During February , food and health care costs increased by 0 .1 . These usings indicate that pretension has not yet consumption in despite the launch of the government-sponsored stimulus package . Prices , with the cut of fuel and food , have risen by 1 .3 from February 2009 Further , the Producer Price Index trim back by 0 .6 during February . It is feared that deflation could be occasioned by the increasingly low consumer prices , then(prenominal) derai ling economic retrieval . Economic analysts however state that with the convalescence hastening , a strong demand allow for conquer this fear . They also contend that the current 9 .

7 joblessness will acquire prices to remain lowAn analysis of the above-mentioned article shows that the hardfisted nature of employers has the positive effect of taming soaring inflation range This is a curious phenomenon because while the action of employers to insufficiently requite workers is frowned upon , it has a positive impact on the public parsimoniousness . Workers who earn low wages have reduced purchase power , a situation which makes businesses to lower production prices . This developm ent makes sure that inflation does not reach! sober levels . It is and so arguable...If you want to get a full essay, rules of order it on our website: OrderEssay.net

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