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Price war. A price war is a form of market competition in which companies within an industry engage in aggressive pricing strategies, “characterized by the repeated cutting of prices below those of competitors”. [1] This leads to a vicious cycle, where each competitor attempts to match or undercut the price of the other. [2]
Price elasticity of demand. A good's price elasticity of demand ( , PED) is a measure of how sensitive the quantity demanded is to its price. When the price rises, quantity demanded falls for almost any good (law of demand), but it falls more for some than for others. The price elasticity gives the percentage change in quantity demanded when ...
e. In economics, aggregate demand (AD) or domestic final demand (DFD) is the total demand for final goods and services in an economy at a given time. [1] It is often called effective demand, though at other times this term is distinguished. This is the demand for the gross domestic product of a country. It specifies the amount of goods and ...
A demand curve is a graph depicting the inverse demand function, [1] a relationship between the price of a certain commodity (the y -axis) and the quantity of that commodity that is demanded at that price (the x -axis). Demand curves can be used either for the price-quantity relationship for an individual consumer (an individual demand curve ...
Gerli said that despite recent declines in mortgage rates to around 6.4% (the lowest level in 16 months), the typical monthly house payment for buyers remains around $2,700. He argues that to see ...
Production–possibility frontier. In microeconomics, a production–possibility frontier (PPF), production possibility curve (PPC), or production possibility boundary (PPB) is a graphical representation showing all the possible options of output for two goods that can be produced using all factors of production, where the given resources are ...
The Fed, after 5.25 percentage points of increases between March 2022 and July 2023, is seen deciding between a quarter-percentage point cut in its key rate to the 5.00%-5.25% range, or a half ...
How rate cuts work. Central banks cut interest rates for two main reasons: financial conditions are expected to worsen drastically, or inflation has cooled so much that leaving interest rates at ...