Cross-price elasticity is an essential concept in economics that measures the response of the quantity demanded of one good when the price of another good changes. Whether complimentary or substitute, the relationship between goods can significantly impact the demand for both. Understanding cross elasticity of demand is vital for companies …

These days there are lots of different types of things that people buy. But when it comes to Non-rivalrous goods most people don’t know about them. Non-rivalrous goods are a unique category of public goods that remain almost the same despite their consumption. These goods maintain a constant supply, regardless …

Dual pricing, also known as price discrimination, is a pricing strategy that has been used by businesses for many years. It involves charging different prices for the same product or service to different customers. This strategy is often used in situations where businesses can identify different groups of customers with …

In a rapidly changing and increasingly competitive business environment, companies are always seeking ways to stay ahead of the curve. One strategy that companies often rely on to maintain their competitive advantage is product diversification. If done correctly, product diversification can help a company grow its customer base, increase revenues, …

Pricing can be a major factor in the success of a business, and price discrimination is one strategy that many companies use to maximize their profits. Price discrimination involves charging different prices for the same product or service based on consumer demand, perceived value, or any other factor, rather than …

When it comes to the stock market, certain events can cause significant volatility in the markets and can lead to major losses for investors. One of the major events that can cause these kinds of losses is a black swan event. The event can cause significant losses due to the …

In the world economy dumping plays a major role, it is the act of selling a product in an importing country at a lower price than that charged for the same product in the exporter’s domestic market. Most countries and businesses all over the world use dumping as a competitive …

When it comes to businesses and economies, almost everything is subject to the laws of elasticity. Price elasticity is a measure of how sensitively demand or supply reacts when the price changes. It’s an important concept because it allows business owners to determine how much prices can be increased or …

Zero-sum is a concept often used in game theory, which states that one person’s gain is equivalent to another’s loss. In other words, the net change in wealth or benefit for all participants of the game remains zero. Zero-sum games can have as little as two players or millions of …

The economic profit of a company tells us the true economic value of a company, which is why EVA has become popular among investors and owners of companies. It helps to show the financial performance of a business by taking into account both its costs of capital and taxes. Companies …