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Rise in price..

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Rise in price..

Post by sujin007 on Thu Dec 06, 2012 4:27 pm

However, the new regulation means the company won’t be able to produce paper as quickly or cheaply as before, causing its product price to rise.

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Re: Rise in price..

Post by sujin007 on Thu Dec 06, 2012 4:28 pm

The rise in price means some consumers may not be able to afford the product, or they may choose to buy from another supplier, shrinking the company’s profits.

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Re: Rise in price..

Post by sujin007 on Thu Dec 06, 2012 4:30 pm

If the company finds the regulation too punitive, it may choose to relocate to another state, resulting in the local unemployment the economist was trying to avoid.

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Re: Rise in price..

Post by sujin007 on Thu Dec 06, 2012 4:31 pm

The economist can prevent such an outcome by recommending the government provide the company with an incentive to support the regulation, like a tax break.

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Re: Rise in price..

Post by sujin007 on Thu Dec 06, 2012 4:33 pm

Of course, such an incentive may not even be necessary. Consumers may happily pay the higher prices and even increase their patronage because they see the company treating the environment responsibly.

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Re: Rise in price..

Post by richmeud99 on Fri Dec 07, 2012 12:06 pm

Of course this is the main problem of Nepal. It is doubt to pay random prices of any goods in the markets. I am also disappointed with bad environment.

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