Europe is the main battleground for gas pricing. In America gas prices are set by the fundamentals of supply and demand (known as gas-on-gas competition), which means they are currently low. In Asia gas is mainly bought and sold at prices set by contracts linked directly to (currently high) oil prices. Europe is somewhere in the middle.
A common definition of a monopoly is when a company has such effective control of its market that it can set prices and stifle innovation by depriving competition of any chance of profit.
But because gold is in finite supply and there's a history of using it as currency, it's often cited as a good inflation hedge. Even if its intrinsic value is questionable, perhaps our fixation with gold as a safe haven is worth something. The thinking goes that if a central bank prints too much money, unleashing rampant inflation, gold will retain its value.
More lending should mean more buying which could soak up diminished inventory quite quickly, leading to rising prices. That, in turn, may push a lot of developers into action. As construction ramps up, resulting employment growth could boost housing demand, by raising domestic household growth and/or reigniting the flow of immigration. More housing demand means even faster appreciation, fueling the boom.
workers may be slow to perceive this dynamic and to lower wage expectations enough to find work. Or they may perceive it perfectly well and conclude that there is little sense in trying to find work until the backlog is reduced. These workers, and especially the young people that fall into this category, don't necessarily represent victims of hysteresis. They may opt to stay in school longer.
For the past six years the media have been reporting a shortage of registered nurses (RNs) in the United States. This shortage is most severe for hospitals, in western and southwestern states, in New England, and for specialized advanced practice nurses. Estimates of average nurse vacancy rates at hospitals range from 10.2 percent to 13 percent, with one in seven hospitals reporting more than 20 percent.
The net gain to producers, known as producer surplus, develops because the equilibrium price suppliers receive is greater than the minimum price they would be willing to accept to produce. The total producer surplus is equal to the area below market price and above supply up to the equilibrium quantity.
When buyers and sellers voluntarily engage in market exchange, both consumers and producers enjoy a net gain from the exchange. The net gain to consumers, known as consumer surplus, arises because the equilibrium price consumers pay is less than the value they place on the units they purchase. Total consumer surplus from market exchange is measured by the area under demand above market price up to the equilibrium quantity.
Equilibrium price is also called market clearing price because at this price the exact quantity that producers take to market will be bought by consumers, and there will be nothing ‘left over’. This is efficient because there is neither an excess of supply and wasted output, nor a shortage – the market clears efficiently. This is a central feature of the price mechanism, and one of its significant benefits.
When the supply and demand curves intersect, the market is in equilibrium. This is where the quantity demanded and quantity supplied are equal. The corresponding price is the equilibrium price or market-clearing price, the quantity is the equilibrium quantity.