What do college tuition, academic journals, and health care have in common besides price inflation?
It is easy to see why this would make demand less elastic, which would imply a higher price in any but a perfectly competitive industry, e.g., (P-MC)/P=1/|elasticity|. But what is the mechanism behind the price inflation (change in price)?
It is really not possible for people like me to tell exactly the mechanism behind the price inflation, I believe it is all about just working with been competitive. I do Forex trading and there is heavy inflation that happens. I am always very careful with these stuff, it is thanks to my broker OctaFX that I am able to work well with their rebate program, I get 15 dollars profits per lot size trade with them, it is just rocking.
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