Economics to Microconcepts
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There are many factors that can cause the price of a product to fluctuate. The product that we are examining is a high quality mountain bike that has been set at a price of fifteen hundred dollars. This price was reached by taking into consideration all of the Laws of Demand. The need of a product to consumers greatly reflects the percent of markup over the initial cost of production. A product is not always sold at a specific percent above cost; many different factors are taken into consideration. There are numerous research teams whose job is to study the economy and provide advice to larger companies on how greatly their product is needed. In the world market it is not unlikely for a product's price to increase and decrease rapidly due to many factors. However, the bigger the amount of increase or decrease the less often the occurrence. It should be highly evident that any event can cause a product to gain or loose value. For example, the increase in gas prices could cause more people to ride bikes, therefore increasing the need for bikes and increasing the price...