Price, in terms of money, is considered as a measure of value and as the quantity of money in units of some form of currency which one may buy or sell a commodity (Fetter, 1912).
Ramus and Birchall (1996) recognize the term fluctuation as prices of commodities go up or down, which is random and therefore unpredictable, except in the mean, or on average.
Vamsidha et al. (2014) price escalation is defined as changes in the cost or price of specific goods or services in a given economy over a period and is a similar to the concepts of inflation and deflation except that escalation is specific to an item or class of items. But Doe (2007) identifies escalation as the provision in a cost estimate for increases in the cost of equipment, material, and labour.
According to the above definition, Price fluctuation can be identify as an
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If;
Cumulative value of work done up to current valuation = Vc
Cost of material at site on current valuation = Mc
Cumulative value of work done up to previous valuation = Vp
Cost of material at site on previous valuation = Mp
Then;
Valuation of work done for the period concerned = (Vc+Mc)-(Vp+Mp)
Cost adjustment factor (To convert contractor’s price to contractor’s cost) = K%
Input not listed for price adjustment under the contract rest (Inputs which are not directly considered for the formula, but are computed indirectly) = R%
Input percentages (The percentage cost contribution of major materials, labour and plant and equipment to the contract) = Px
Current variation = V
Non-adjustable element = Vna
Amount of the claim that should be subjected to price adjustment = V-Vna
Contractor’s cost (Expenditure) within the amount
Conversion to modern worth: Lawrence H. Officer and Samuel H. Williamson. « Purchasing Power of Money in the United States from 1774 to 2010 » MeasuringWorth. 2011.
Price gouging is increasing the price of a product during crisis or disaster. The price is increased due to temporal increase in demand while supply remains constrained. In many jurisdictions, price gauging is widely considered as immoral and is illegal. However, from a market point of view, price gouging is a correct outcome of an efficient market.
Empirical literature examining the determinants of inflation has mostly viewed it as a monetary phenomenon. This viewpoint basically stems from Milton Friedman’s famous dictum that inflation is always and everywhere a monetary phenomenon. However, the conjecture of Friedman has recently come under attack. In fact, there appears to be virtually no correlation between money growth and inflation since the early 1980s. This leads to evolution of the argument known as Fiscal Theory of Price Level (FTPL). To capture the nonmonetary aspects of inflation, a number of economists investigate the main political, institutional and economic determinants of inflation across countries and over time. For instance, Aisen and Veiga (2006) conclude that political instability leads to higher inflation. Their study reveals that an additional government crises and a cabinet change which are used as proxy for measuring political instability raise inflation rate by 16.1% and 9.1% respectively. In another study, Aisen and Veiga (2008) extend their work to further analyze the effect of political instability, social polarization and the quality of institutions on inflation volatility. They argue that politically unstable and socially polarized countries with weak institutions are more exposed to political shocks that result in discontinuous monetary and fiscal policies which in turn result in higher inflation volatility. The intuition is that rising inflation instability creates frictions on market which reduces economic efficiency and causes the prevailing price in the economy to deviate from the price which would otherwise have been determined in presence of stable price level. They also provide evidence that greater independence of the Central Bank leads...
Price is that which is given up in an exchange to acquire a good or service. Price is typically the money exchanged for the good or service. Blue Jays pricing structure is based on the perceived value of the game, the entertainment, the love of baseball, and the action, not just the money.
The Roman army was unbeatable for approximately 300 years, so they must have perfected the art of war at the time. The Roman army’s skill, effective chain of command, discipline, organization, and extensive training enabled it to fight its way to victory. As a matter of a fact, the Roman army’s tactics were so brilliant that they are similar to modern military tactics today. The organization of the Roman army was imperative to its success as a whole.
Money has evolved with the times and is a reflection of the progress of man. Early money was a physical commodity, grain, gold or silver. During the vital stage, more symbolic forms of money such as certificates of deposit, bank notes, checks, letters of credit, bonds and other forms of negotiable securities came into prominence. Social development transformed money into a trust, “In God We Trust' it says on the back of the ten-dollar bill.” (The Ascent of Money, 27)
Scarcity suggests all things in the world are in finite supply. People therefore have to make choices. The concept of value is central to economics. Objective value is the equilibrium free market price. Subjective value arises from individuals' preferences, and so influences economic agents' behaviors. In microeconomic theory supply and demand attempts to describe, explain, and predict the price and quantity of goods sold in perfectly competitive markets. It is one of the most fundamental economic models and it is used as a basic building block in a wide range of more detailed economic models and theories. Price is the going rate of exchange between buyers and sellers in a market. Price theory charts the movement of measurable quantities over time, and the relationship between price and other measurable variables.
Fixed exchange rate which is at times known as pegged exchange rate is an exchange rate regime where a country’s currency value is fixed against the value of another currency or to another measure of value such as gold.
Price is the values entirety that consumers trade for the advantages of having or utilizing the product or services. Different places and cultural have different spending culture. Therefore the price has to be relevant according to the product offer because it can reflect the image of a
Value- It includes providing products and services and how Mr. Price add values to customers.
In the business world, price discrimination can be detrimental to small businesses trying to compete with larger organizations pricing. In the 1930s congress was worried about large multimarket firms using predatory marketing techniques in certain markets to bankrupt smaller firms in the area. In response, Congress enacted the Robinson-Patman act which prohibits larger forms conducting pricing strategies that contribute towards becoming a monopoly by getting rid of their rivals, the smaller family owned stores. With this measure in place the smaller mom and pop stores are better protected from the larger chains and can help to contribute more to the local economy. A downside of the act from a consumer standpoint is that the larger chain firm
Price discrimination is a corporate strategy where a seller offers the same product to customers at different prices. This practice is a technique where sellers appeal to a wide range of customers and capitalize on opportunities to maximize profits. The word discrimination often has a poor connotation. However, in terms of finances, the word discrimination merely denotes to how sellers can sway market price in order to meet the demand of buyers. In the United States, price discrimination generally is discussed and debated at the higher education level. In higher education, price discrimination denotes a scenario where academies charge unlike tuition prices to students for the same quality of education. This practice can be done at both the university and departmental levels as well. In order for price discrimination to occur, the seller must have the ability to adjust price. Price discrimination is also used by a seller that is offering a product that has a strong consumer demand with few alternatives. This is done because customers are willing to pay more for a given product. This entry provides examples of price discrimination in the private sector and in higher education.
Price is what a buyer must give up to obtain a product. It is often the most flexible of the four marketing mix element that the price is the quickest element to change. A marketer can raise or lower prices more frequently and easily than they can change other marketing mix
There are many factors that affect the economy, inflation is one of them. Basically inflation is risingin priceof general goods and services above a period.As we see value of money is not valuable for the next years due to inflation. Today every country has facing inflationary condition in their economy.GDP deflator is a basictool that tells the price level of final goods and services domestically produced in an economy.GDP is stand for gross domestic product final value of goods and services, Furthermore GDP deflator shows that how much a change in the base year's GDP relies upon changes in the price level. . Inflation in contrast, how speedy the average prices intensity is increases or changes above the period so the inflation rate define the annual percentage rate changes in the level of price is as measure by GDP deflator more over GDP deflator has a advantage on consumer price index because it isn’t only based on a fixed basket of goods and services. It’s a most effective inflation tool to identify the changes in consumer consumption and newly produced goods and service are reflected by this deflator. Consumer price index (CPI) is also measure the adjusting the economic data it can also be eliminate the effects of inflation, through dividing a nominal quantity by price index to state the real quantity in term.
The invention of money was a major improvement in peoples’ lives. In the past, people usually had to travel all day to find the person who is willing to exchange their goods. In addition, the goods people want to exchange did not have the standard value of measurement. This led to unequal exchanges. Furthermore, it is not convenient to carry heavy goods from one place to another for an exchange. To solve these issues, money will be the only solution. Later, people tend to develop money from cowry shells to credit cards for the convenience and to improve their society.