how is price rise defined?
2006-06-16 03:22:25 · 7 answers · asked by harsha 1 in Social Science ➔ Economics
In simple terms it is the amount of money that you have to pay for something now compared with what you had to pay before.
However, during periods of deflation, prices can be deemed to have risen, in real terms, even if the ticket price remains the same. Contra- wise, during periods of inflation, ticket prices can be said to have fallen, in real terms, even though the ticket price remains the same. I have been talking above about individual prices.
To measure price rises in the economy generally, (inflation) a basket of goods and services are taken, and their price variations measured on a regular basis, against a base year.
Your question is framed very broadly though. So I am not sure that I have answered your point.
2006-06-23 03:25:15 · answer #1 · answered by Veritas 7 · 0⤊ 0⤋
A price rise is another way of saying "inflation". That means a rise in costs of common goods due to too much money circling around out there.
2006-06-16 03:28:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There are two types: nominal and real.
In nominal terms, the price rises because of monetary factors, such as inflation (more money in the money supply).
In real terms, price rises because of market factors, ie supply decreases or demand increases.
These can be told apart by looking at macroeconomic factors and running a multiple regression analysis.
2006-06-16 06:53:47 · answer #3 · answered by Veritatum17 6 · 0⤊ 0⤋
Usually as a percentage rise of the newer price over an older price. One can select the dates(?) for "newer" and "older"
However, another way is to say "Heinze ketchup is 12 cents higher than the last time I bought it".
2006-06-16 03:32:39 · answer #4 · answered by Puzzleman 5 · 0⤊ 0⤋
Hi Harsha
1) the price of the commodity rises when the demand is more in comparison to the supply in the market. the producers increase the price of commodity in order to reduce the demand.
2) the price of a commodity may also increase due to decrease in the value of money. the value of money decreases when there is over circulation or over supply of money in the market.
2006-06-16 04:58:49 · answer #5 · answered by preeti 2 · 0⤊ 0⤋
When a price goes up it rises. Are you high?
2006-06-17 06:47:04 · answer #6 · answered by Ouros 5 · 0⤊ 0⤋
how about : when the price goes up ??
usually happens, with lot of demand and little supply. The same old story.
2006-06-16 03:27:22 · answer #7 · answered by Anonymous · 0⤊ 0⤋