MANAGED PRICE Meaning and
Definition
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Managed price refers to a pricing mechanism in which the government or another central authority intervenes to regulate and control the price of a particular commodity, product, or service. The objective of managed pricing is to ensure that prices do not escalate significantly or erratically, thus ensuring stability and affordability in the market.
The managed price system is typically implemented in instances where market forces alone are unable to sufficiently regulate prices due to factors such as monopolistic behavior, excessive price volatility, or social considerations. The government or central authority employs various measures to manage prices, such as imposing price ceilings (maximum prices) or price floors (minimum prices), directly controlling supply and demand, implementing subsidies or taxes, or employing other regulatory measures.
The rationale behind managed pricing can vary depending on specific circumstances and economic goals. It may aim to safeguard consumer interests by preventing price gouging or exploitation, particularly for essential goods and services. It could also facilitate income redistribution by keeping prices low for certain goods to benefit low-income individuals or to support specific industries important for national development. Additionally, managed pricing can help maintain stability in the economy, prevent hyperinflation, or correct market failures by aligning prices with long-term national objectives.
However, critics argue that managing prices can lead to negative consequences such as reduced competition, distorted market signals, and inefficiencies. Therefore, the effectiveness of managed pricing depends on careful analysis, monitoring, and adjustment by the governing authority to achieve a balance among various economic factors and goals.
Common Misspellings for MANAGED PRICE
- nanaged price
- kanaged price
- janaged price
- mznaged price
- msnaged price
- mwnaged price
- mqnaged price
- mabaged price
- mamaged price
- majaged price
- mahaged price
- manzged price
- mansged price
- manwged price
- manqged price
- manafed price
- manaved price
- manabed price
- manahed price
- manayed price
Etymology of MANAGED PRICE
The etymology of the word "managed price" can be understood by breaking it down into its constituent parts:
1. Managed: The word "managed" is derived from the verb "manage", which comes from the Italian word "maneggiare" meaning "to handle or control". It entered English in the late 16th century, denoting the act of controlling or supervising something.
2. Price: The word "price" originated in Middle English from the Old French word "pris" meaning "prize, value, worth". It has roots in the Latin word "pretium" meaning "value or worth".
When used together as "managed price", the term refers to a controlled or regulated price, often set by a central authority or government, to ensure stability or prevent excessive fluctuations in the market.
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