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The Definition of Price

作者:佚名     时间:2010-09-25     浏览:677    
绿叶鸟网(www.lvyeniao.cn)原创整理的 > 考研英语作文   

Prices determine how resources are to be used. They are also the means by which products and s that are in limited supply are rationed among buyers. The price system of the United States is a complex network composed of the prices of all the products bought and sold in the economy as well as those of a myriad of s, including labor, professional, transportation, and public-utility s. The interrelationships of all these prices make up the "system" of prices. The price of any particular product or is linked to a broad, complicated system of prices in which rything seems to depend or less upon rything else.

If one were to ask a group of randomly selected individuals to define "price", many would reply that price is an amount of money paid by the buyer to the seller of a product or or, in other words that price is the money values of a product or as agreed upon in a transaction. This definition is, of course, valid as far as it goes. For a complete understanding of a price in any particular transaction, much than the amount of money involved must be known. Both the buyer and the seller should be familiar with not only the money amount, but with the amount and quality of the product or to be exchanged, the time and place at which the exchange will take place and payment will be made, the form of money to be used, the credit terms and discounts that apply to the transaction, guarantees on the product or , delivery terms, return privileges, and other factors. In other words, both buyer and seller should be lly aware of all the factors that comprise the total "package" being exchanged for the asked-for amount of money in order that they may evaluate a given price.


 
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