Write two paragraphs explaining if you are in agreement or
disagreement with the statement "Low prices...
Write two paragraphs explaining if you are in agreement or
disagreement with the statement "Low prices are good for the
economy."
Solutions
Expert Solution
According to me lower prices are not too good for the economy
even though people prefer having lower prices for the goods and
services they purchase.
Lower prices can spoil the brand image as those who purchase
high quality products perceive that lower price for any good is
because of its lower quality. This thought develops negatively in
the minds of people and the producer's and suppliers are
affected.
To maintain lower prices so as to attract more customers away
from competitor's the firms often produce excess quantities by
neglecting the externalities. Lower prices in the economy also
leads to over consumption that can create negative
externalities.
Lower prices also affect the firms and businesses because, they
lower the prices to attract more customers, but this increases
their cost of production which decreases their profits. To maintain
their profits, these firms and businesses employ unfair means like
adding low quality inputs during the production of goods and
services instead of high end inputs.
When firms are forced to lower the prices of various goods and
services, many workers loose their jobs as firms lay them off due
to Falling profits.
Thus even if low prices are a boon for some section's of
society, on other hand they are bane for others.
Write two paragraphs in agreement or disagreement with the
statement "Low prices are good for the economy." Include at least 2
references in support of your argument.
Write two paragraphs in agreement or disagreement with the
statement "Low prices are good for the economy." Include at least 2
references in support of your argument.
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