Archive | Price Determination

How Prices of Joint Commodity are Determined?

The following article will guide you about how prices of joint commodity are determined. (a) Joint demand: Sometimes two commodities are demanded jointly. In such cases a change in the supply of one will affect the price of the other. If the two commodities are complements—like cameras and films—an increase in the supply of one will lead to a rise [...]

By Nipun S|2017-01-13T05:58:19+05:30January 13, 2017|Price Determination|Comments Off

Price Determination under Oligopoly: Non-Collusive and Collusive

In this article we will discuss about Non-Collusive and Collusive Price Determination under Oligopoly. The Sweezy Model of Kinked Demand Curve (Rigid Prices) (Non-Collusive Oligopoly): In his article published in 1939, Prof. Sweezy presented the kinked demand curve analysis to explain price rigidities often observed in oligopolistic markets. Sweezy assumes that if the oligopolistic firm lowers its price, its rivals [...]

By Natasha Kwatiah|2016-03-02T04:21:48+05:30March 2, 2016|Price Determination|Comments Off