The accuracy of the market value in reflecting the supply and demand information .
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PRICE ELASTICITY
The change in price as related to supply and demand. The more elastic the better. Refer to elasticity.
PRICE FIXING
The conspiracy among competitors to (1) fix the price for the sale of a good, (2) Fix the formulas used to determine the price of the sale, (3) Fix the […]
PRICE FLOOR
The lowest possible price for a goods or service that is fixed
PRICE GOUGING
The increase of prices by retailers in the absence of a viable alternative . The oil industry is subject to much speculation with regards to price gouging .
PRICE IMMUNIZATION
An investor’s approach to cover future liabilities by purchasing securities with a certain expected rate of return that is determined by the pricing model. Investments such as bonds which have […]
PRICE INDEX
Expressed as a percentage, it is the change of prices of a given basket of goods over a period. The price of a certain year is taken as the standard.
PRICE LEADER
1. Marketing: A market leader in determining the price range of a particular range of products, which is followed suit by its competitors. 2. Merchandiding: The lowering of the price […]
PRICE LEVEL ADJUSTED MORTGAGE (PLAM)
The fixation of the interest rates of a loan agreement . However, the monthly payments are variable and are determined by adjusting the balance payment according to the consumer price […]
PRICE LIMIT
The amount of price movement allowed in a trading session . This controls a volatile market.
PRICE LIMIT ORDER
The price set by the customer to the broker for the execution of a trade.
PRICE MAINTENANCE
The fixation of the minimum price by the manufacturer under an agreement, for the sale of a trademarked product. The obliging parties are inclusive of the entities who are aware […]
PRICE MECHANISM
The dependence of supply and demand of a good or service and its value. When demand is greater than supply, the price falls and vice versa. The influx of suppliers […]
PRICE MIXES
The information consisting of price and conditions that the customers receives.
PRICE NEGOTIATION MEMORANDUM (PNM)
The negotiation documents that provides the points agreed upon when an agreement was reached on the price of goods and service to be supplied. It acts as a measure of […]
PRICE OF NON QUALITY (PONQ)
The sum of time, opportunity cost and money that is lost from the adopting wrong methods. The estimate of PQNQ is the product of the time taken to fix a […]
PRICE OF TIME
The rate of interest that is void of risk, which will be able to entice an investor to invest.
PRICE PENETRATION
The pricing of a relatively new product at a low price accompanied by a huge promotional campaign to capitalize a large portion of the marketshare before the invasion by other […]
PRICE POINT
The retail price of a good that is determined based on its competitiveness to the prices of similar products. The price however is not fixed and changes depending on the […]
PRICE PREVAILING AT DATE OF SHIPMENT
Under this agreement, the price that the buyer pays is the one prevalent at the time of shipping and not the price at the time of ordering.
PRICE PROTECTION
Under this agreement, the buyer and seller reach a mutual understanding on the fixation of the price for a specific duration. However, in other similar agreement, the fluctuations in price […]
PRICE RATCHET
The occurrence of an event that causes the price of a good to change significantly. For example, a significant price fall is evident in the share prices of a company […]
PRICE RISK
The risk associated with sudden changes in the prices of goods in a market.
PRICE SENSITIVE MARKET
A market in which the level of demand changes significantly even for a small change in the price.
PRICE STABILITY
A market situation wherin the price of a good in demand has a slow response to changes in level of demand. In some cases, the change is almost negligible. Inflation […]