Sentences with phrase «equilibrium price»
The phrase "equilibrium price" refers to the point where the supply and demand for a product or service are perfectly balanced. It is the price at which both buyers and sellers are satisfied, as there is neither an excess supply nor an excess demand for the item in question. Full definition
Less sellers, more buyers, that's a double effect shifting the market equilibrium price for second hand cars.
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Market forces (supply and demand) determine equilibrium pricing for long - term bonds, which set long - term interest rates.
I don't want a universe where the cultural equilibrium price of a book is the same as the HD version of a single TV episode or of two Mp3s.
There is a belief in equilibrium prices, i.e., there exists an efficient market whose pricing represents a true valuation price which will change only as the market obtains and digests new information.
Therefore the cultural equilibrium price (the perception of «real» value) drives the market price, making room for it when normal supply and demand might not come to the same end.
«In my mind, the sensible way to do things is to use some kind of system that establishes a market equilibrium price and does not depend heavily on the time in which you participate,» he told CoinDesk in an interview.
Higher profits from selling to the British made it so the Irish / British market was at equilibrium price was higher than what farmers could pay, contributing to one of the many reasons people starved.
The portfolio will eventually achieve equilibrium pricing after a market drop since the majority of my holdings are high quality; and the continuous contributions at lower market prices will aid in reducing the cost basis even further.
Any deviation from this true price is quickly exploited by informed traders who attempt to optimize their returns and it restores the true equilibrium price.
The market clearing or equilibrium price for a good or service is the one price at which quantity supplied equals quantity demanded.
In equilibrium prices are higher, but power is equalised again, so price neither rises nor falls from its new higher equilibrium.
«Oil prices are below where they should be, and hopefully they'll start gravitating back to the equilibrium price of between $ 80 and $ 85 a barrel.»
Equilibrium price will move higher as the upstream factors mentioned above move into the supply equation.
The equilibrium price is where the supply of goods matches demand.
You see, if at the current price all tickets get sold, it means the market price is infact lower than the equilibrium price.
This puts significant downward pressure on the equilibrium price.
You'll notice I said cultural equilibrium price — not market equilibrium price.
Through supply and demand market forces, equilibrium prices are reached in an orderly and equitable manner within the exchanges, and world economies, and you, benefit tremendously from futures trading.
Diversification is only a surrogate and usually a damn poor surrogate, for intimate knowledge of an economic entity, control of that entity and price consciousness (a denial of equilibrium pricing).
Equilibrium Pricing — i.e., the price at any moment of time represents an efficient market, and that price will change as the market digests new information.
Shorter term traders tend to focus on a primacy of the income account, near - term changes in market prices, top - down analysis and equilibrium pricing (i.e., the market price reflects all - encompassing values).
So even if any such instance occurs, either people will exploit it to make the arbitrage profit zero (security reflects the equilibrium price) or the profit from such transaction is so less, compared with the effort involved, that people will tend to ignore it.
If a stock falls away from its equilibrium price (let us say it becomes undervalued) due to irrational trading (noise traders), rational investors will (in this case) take a long position while going short on a proxy security, or another stock with similar characteristics.
There exists an equilibrium price.
The bet here to me is that this 20 % price cut is bold enough to set the equilibrium pricing to stabilize enrollment, and thereby the stock price.
And I claim that long term this is the equilibrium price of that median home.
As Joshua Gans points out here The Russell Girl divx the effect of the scheme will be to reduce the demand for permits and therefore the equilibrium price.
The price stood at $ 29 at the end of 2003, and at about $ 25 — considered the «equilibrium price» by analysts — at the end of 2002.
If demand is not equal with supply, or in economic terms, if the market is in disequilibrium, then market prices and market values should be decreasing or increasing towards the equilibrium price, depending how demand relates to supply.
I think the equilibrium price for Gold is probably about $ 775 - $ 825 But the artificial high price for the last few years has driven supply way above an equilibrium level.
I would not be surprised to see gold drop way below the equilibrium price as a pendulum swing artificially low for a while.
If the US produced in full (It won't happen) what they are capable of producing we would have $ 35 and lower oil for years even though the equilibrium price for oil is probably about $ 55.