scholarly journals Price Rigidity and Wage Rigidity: Market Failure or Market Efficiency

2017 ◽  
Vol 9 (11) ◽  
pp. 82
Author(s):  
Chao Chiung Ting
Keyword(s):  
Market Efficiency ◽  
Great Depression ◽  
Market Failure ◽  
Demand Curve ◽  
Supply And Demand ◽  
Wage Rigidity ◽  
Supply Curve ◽  
Price Rigidity ◽  
Product Price ◽  
Ex Post

We observe that money wage and price level are not only rigid but also flexible in different business cycles. For example, there are inflationary recessions (e.g., oil crisis in U.S.) versus deflationary recessions (e.g., Great Depression between 1929 and 1933) as well as price rigidity (e.g., Great Depression between 1934 and 1939). Thus, the general price theory, including wage, should explain both price flexibility and price rigidity. When demand curve shifts during business cycle, the best strategy of the firm is to adjust capital and labor (i.e., size of the firm) so as to shift supply curve toward the same direction as demand curve shifts. If both supply curve and demand curve shift toward the same direction proportionally, there is perfect price rigidity. When product price is rigid, the firm is willing to pay previous wage. Thus, price rigidity and wage rigidity are effect (i.e., not only ex-post phenomenon that we observe but also endogenous market efficiency that arises from to the coordination of supply and demand), not exogenous market failure to disturb economy.

scholarly journals Market Model with Positive Demand Curve Overthrows Marxist and Keynesian Model

2020 ◽  
Vol 9 (3) ◽  
pp. 59
Author(s):  
Alqi Naqellari
Keyword(s):  
Demand Curve ◽  
Supply And Demand ◽  
Market Price ◽  
Marxist Theory ◽  
Market Model ◽  
Supply Curve ◽  
Demand And Supply ◽  
Keynesian Model ◽  
Analysis And Synthesis ◽  
Macroeconomic Indicators

In this paper is analyzed the demand and supply side from the perspective of Marxist theory. The supply and demand side is both analyzed with their respective characteristics in capitalism, socialism and in a mixed economy. The possibilities of a macroeconomic equilibrium by considering the following concepts such as commodity, value, price, profit are analyzed. The aim of this paper is: to develop through a non-exhaustive analysis, the common features and differences between macroeconomic models of the aggregate market in the two systems, to build the aggregate market of a macroeconomic model by taking into account these characteristics and to emphasize its importance for the economy. In conclusion, differences between concepts related to macroeconomic equilibrium were identified. A new equilibrium model for the socialist and capitalist model was built. In centralized economies, demand and supply curve lies in a parallel curve with the X-axis, were domestic product is placed. In the market economy model, the demand and supply curve has a positive slope and stretch simultaneously over the market price line. They do not intersect with each other as in the Classical and Keynesian model. This market model applies to the economy. It allows governments, central banks, research institutions, universities, various researchers, etc. to analyze macroeconomic indicators. In this paper, the model is applied to the Albanian economy. In this paper, we used the methods of analysis and synthesis, comparison and description, the method of creating virtual market models, etc.

scholarly journals KURVA PENAWARAN DAN PERMINTAAN PRODUK PERIKANAN TANGKAP PERAIRAN UMUM DARATAN DI PROPINSI SUMATERA SELATAN

2017 ◽  
Vol 4 (2) ◽  
pp. 227
Author(s):  
Yesi Dewita Sari ◽  
Maulana Firdaus ◽  
Hakim Miftakhul Huda
Keyword(s):  
Demand Curve ◽  
Supply And Demand ◽  
Regression Method ◽  
Supply Curve ◽  
Fish Production ◽  
Inland Fisheries ◽  
Fishery Product ◽  
Production Policy ◽  
Exploitation Rate ◽  
Economical Parameter

Penelitian bertujuan untuk mengetahui keseimbangan kurva penawaran dan permintaan produk perikanan tangkap perairan umum daratan di Propinsi Sumatera Selatan. Penelitian dilakukan pada tahun 2007 sampai dengan 2008. Data yang digunakan adalah data primer dan sekunder. Pendugaan kurva penawaran menggunakan parameter biologi, parameter ekonomi, sedangkan pendugaan kurva permintaan menggunakan metode regresi dari beberapa variabel yang berpengaruh. Hasil penelitian menunjukkan bahwa tingkat pemanfaatan sumber daya perikanan perairan umum daratan pada kondisi MSY ditinjau dari sisi jumlah produksi adalah 85,55% dan 82,32% jika ditinjau dari jumlah effort. Kurva penawaran berbalik kebelakang pada jumlah produksi 44.004 ton dengan tingkat harga Rp. 2.350 per kg. Perpotongan kurva penawaran dan permintaan terjadi pada tingkat harga Rp. 5.200 per kg dan jumlah produksi 32.597 ton. Perpotongan atau keseimbangan ini terjadi pada kurva penawaran setelah berbalik ke belakang. Peningkatan produksi secara terus menerus akan menyebabkan sumberdaya perikanan perairan umum tidak lestari. Implikasi kebijakan yang dapat disarankan adalah diperlukannya kebijakan pengelolaan dengan meningkatkan produksi ikan dari usaha budidaya. Tittle: Supply and Demand Curve of The Inland Fishery Product in Sumatera South ProvinceThis reseach aimed to know equilibrium of supply and demand of both curve inland fisheries resource in South Sumatera. Biological and economical parameter are used to estimated a supply curve, and regression method is used to estimate demand curve. Result showed that exploitation rate of inland fisheries resource at MSY are 85.55% of harvest and 82,32% of effort. Backward bending supply curve happened at 44,004 ton of harvest and Rp. 2,350 of price per kg. Supply and demand equilibrium happened at Rp. 5,200 of price per kg and 32,597 ton of harvest. This equilibrium happened at backward bending of supply curve. A continuing increase in production will level to unsustainable fishery production. Policy implycation could be addressed is the need for the management authority to increase fish production from aquaculture.

2. Markets

2021 ◽  
pp. 13-27
Author(s):  
Ariel Ezrachi
Keyword(s):  
Price Elasticity ◽  
Demand Curve ◽  
Market Price ◽  
Product Market ◽  
Competitive Market ◽  
Supply Curve ◽  
Product Price ◽  
Demand And Supply ◽  
Meeting Point ◽  
Cross Price Elasticity

‘Markets’ examines markets, looking at demand and supply. The demand curve provides information on how the demand for a given product changes with its price, while the supply curve illustrates the correlation between the product price and quantity available for a given period. The meeting point between the two, in a competitive market, represents the market price. The market price is affected, among other things, by the nature of the product in question, by the availability and price of substitutions (cross-price elasticity), by changing consumer needs and preferences, by innovation, and by consumers’ level of income. There are two types of markets relevant here: the product market and the geographical market.

scholarly journals Market Behavior for in Shell Brazil Nuts Produced in Brazil from 2000 to 2010

2016 ◽  
Vol 23 (3) ◽  
pp. 369-377 ◽  
Author(s):  
Elisangela Lobo Schirigatti ◽  
Giovanna Paiva Aguiar ◽  
Joao Carlos Garzel Leodoro da Silva ◽  
José Roberto Frega ◽  
Alexandre Nascimento de Almeida ◽  
...  
Keyword(s):  
Growth Rates ◽  
Demand Curve ◽  
Supply And Demand ◽  
Supply Curve ◽  
Market Behavior ◽  
Positive Shift ◽  
Brazil Nuts ◽  
Trend Model ◽  
Demand Curves ◽  
Incentive Policies

ABSTRACT This paper aimed to analyze the market behavior of in shell Brazil nuts produced by Brazil during the period of 2000 to 2010. In order to do it, structural brakes in the data were identified, the existence of correlations between the variables price, quantity and value was investigated; and the shift of the supply and demand curves was described for the nuts production. The trend model was used to identify the direction of the shift, by calculating the growth rates of national prices and of produced quantities. When analyzing the whole period (2000-2010), there was a positive shift of the demand curve, but when separately analyzing the two sub periods defined by the Chow test (2000-2005 and 2006-2010), a negative shift of the supply curve was identified on the first sub period, while the second subperiod revealed a positive shift of the supply curve. The results showed that the market of Brazil nuts is ascending and that the government’s incentive policies to the activity were effective.

scholarly journals A Corpus-based Study of Bubble Metaphor in the American Real Estate Market

2018 ◽  
Vol 5 (2) ◽  
pp. 34
Author(s):  
Guihang Guo ◽  
Zhaohui Wang
Keyword(s):  
Real Estate ◽  
Demand Curve ◽  
Supply And Demand ◽  
Real Estate Market ◽  
Supply Curve ◽  
Housing Bubble ◽  
Demand And Supply ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market

The study aims to find whether the concept of metaphorical “BUBBLE” can assist us in understanding thephenomena of US housing bubble appearing from 2001 to 2007. With the node of “housing bubble”, the researcherssearch the collocates of it and dig into the context of highly frequent collocates. The study finds: 1)the collocates of“housing bubble”, mainly categorized in “v+N”, “n/adj+N” and “N+v”, reflect the 5 stages of housing bubbledevelopment and the context explains the cause and effect of housing bubble in every stage; 2)the maincorrespondences of BUBBLE metaphor have been concluded in the real estate market; 3)the combination of bubblemetaphor and orientation metaphor can explain the demand and supply curve of real estate. As a result, it can assistbusiness English teachers in teaching the supply and demand curve of the housing bubble.

Capital Budgeting and business cycles

2021 ◽  
pp. 315-335
Author(s):  
Edward W. Fuller
Keyword(s):  
Interest Rate ◽  
Demand Curve ◽  
Supply And Demand ◽  
Investment Project ◽  
The Other ◽  
Investment Projects ◽  
Scarce Resources ◽  
Other Hand ◽  
The Future ◽  
The Interest Rate

Every investment project is aimed at achieving some future goal. This goal can only be attained by employing scarce resources, like time. Every investment project entails foregoing other investment projects. It is impossible to undertake all investment projects simultaneously because resources are scarce. This means each investment project is subject to cost. The investment project may be unsuccessful in achieving the future goal and the entrepreneur may suffer a loss. On the other hand, investment projects are only undertaken because they are perceived as more valuable than their costs. Every investment project undertaken implies the possibility of earning a profit. Investment projects take time. An investment project can be represented by a time line. Time A represents the beginning of the production process. Time B is the end of the production pro-cess. Line AB is called the period of production. Present goods are scarce resources that can be consumed im-mediately. On the other hand, future goods cannot be consumed immediately. Future goods are only expected to be consumer goods at some point in the future. An investment project entails making an investment at time A and receiving a present good at time B. All else equal, present goods are more valuable than future goods.1 Any good at time A is more valuable than the same good at time B. This is called time preference. Money is the present good par excellence. Therefore, future goods can be called future cash flows. All else equal, present money is more valuable than future money. This is called the time value of money. The interest rate is the price of present goods in terms of future goods. The interest rate is the price which equates the amount of present goods provided by savers with the amount of present goods demanded by investors. Like all prices, the interest rate is determined by supply and demand. Savers are suppliers of present goods. The supply curve (S) is the quantity of present goods supplied at each interest rate. Factor owners (investors) are the demanders, or buyers, of present goods. The demand curve (D) is the quantity of present goods demanded at each interest rate. The intersection of the supply and demand curve determines the interest rate. The interest rate is determined by the supply and demand for present goods:2

scholarly journals Optimasi Tingkat Layanan Call Center Jasa Teleponi Dasar: Kajian Regulasi

2019 ◽  
Vol 9 (3) ◽  
pp. 151
Author(s):  
Hendro Purwadi
Keyword(s):  
Waiting Time ◽  
Call Center ◽  
Interactive Voice Response ◽  
Demand Curve ◽  
Comparative Method ◽  
Supply And Demand ◽  
Service Level ◽  
Time Intervals ◽  
Business Approach ◽  
Voice Response

Service level in the call center is calculated based on the number of calls answered during the certain time intervals compared to the total number of calls received. The measurement of service level on the call center operator starts when the caller presses the menu to talk to the  operator on interactive voice response (IVR) menu, and is expressed as a percentage. The higher expected percentage of service level will be higher the needs of operator in the services.  Regulation in Indonesia determines service level for the call center of Basic Telephony Services is in the amount of more than or equal to 90% in 30 seconds. The author uses a business approach to the operational of the call center to analyze existing statutory data. Through the comparative method between operator occupancy and the costs required for the operation of call center using supply and demand curve, the optimum service level value at the call center of Basic Telephony Services can be known, which is 85% in 25 seconds. This means that 85% of incoming calls must be answered by the operator with a maximum waiting time of 25 seconds.

scholarly journals An Ex-Post Investigation Of Interest Rate Parity In Asian Emerging Markets

2011 ◽  
Vol 6 (2) ◽  
Author(s):  
Bahram Adrangi ◽  
Kambiz Raffiee ◽  
Todd M. Shank
Keyword(s):  
Interest Rate ◽  
Emerging Markets ◽  
Statistical Tests ◽  
Supply And Demand ◽  
The Philippines ◽  
Uncovered Interest Parity ◽  
Interest Rate Parity ◽  
Ex Post ◽  
Interest Parity ◽  
Asian Emerging Markets

This paper investigates the uncovered interest parity theory for the three emerging markets of Korea, the Philippines, and Thailand. The study provides evidence on the efficiency of the currency markets of these economies. In this paper we test for the uncovered interest parity because futures markets for currencies of most emerging markets are not well developed. Furthermore, short- term exchange rate supply and demand are often dominated by the uncovered international investments. Several statistical tests are applied in an attempt to detect evidence of uncovered interest parity. We find there is evidence that the currencies of higher interest rate emerging economies tend to depreciate in the future spot market. However, our test results indicate that this relationship does not support the uncovered interest parity strictly. Arbitrage opportunities remain for a longer periods than predicted by the uncovered interest parity. Furthermore, these abnormal gains are not random and could be predicted by a well designed econometric model. These findings are consistent with empirical findings surrounding uncovered interest parity for mature markets of the world.

scholarly journals Dynamic Analysis of Duopoly Price Game Based on Low-Carbon Technology Sharing

2020 ◽  
Vol 2020 ◽  
pp. 1-18
Author(s):  
Fengshan Si ◽  
Zhengkun Yan ◽  
Jing Wang ◽  
Daoming Dai
Keyword(s):  
Research And Development ◽  
Supply And Demand ◽  
Equilibrium Strategy ◽  
Low Carbon ◽  
Technology Research ◽  
Product Price ◽  
Price Game ◽  
Game Equilibrium ◽  
The Stability ◽  
Technology Level

Taking the carbon emissions per unit product as the standard to measure the low-carbon technology level of the enterprise, this article analyzed how the technology supplier enterprises realize low-carbon production and achieve a win-win situation for both supply and demand through technology sharing through technology research and development. Based on the positive effect of low-carbon technology level on product demand, we studied the optimal pricing strategy and the optimal low-carbon technology level in the technology supply enterprises under the Stackelberg game in 3 conditions (i.e., without technology research and development or technology sharing, with technology research and development but no technology sharing, and with both technology research and development and technology sharing). We also drew a comparative analysis of the optimal product price, the optimal low-carbon technology level, and the optimal profit in the three scenarios. Besides, by constructing a delayed differential price game model, we studied the equilibrium strategy of price competition between technology supply and demand companies and the local asymptotic stability of the game system at the equilibrium point. In addition, the effects of delay strategy on game equilibrium strategy, the influence of the degree of adjustment of decision variables on the stability of the game system, and the stability of the game system on the evolution trend of the game are also explored. By comparing and analyzing the game results of the oligopoly enterprises in the stable system and the unstable system, it confirmed that the system instability usually causes serious harm to the enterprise.

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