What are the different types of price systems?
Price systems are examples of strategies that help set prices that are in line with the supply and demand for certain goods and services. At a national level, systems of this type have to do with how this relationship is managed, especially when it comes to how much government is involved in this process. Today there are three different types of price systems, the third approach is the combination of two more.
One of the more common types of price systems used is the free prices system. This approach requires that the prices of goods and services be strictly based on what is happening in terms of supply and demand for these products. If there is any government influence, it is maintained on a bare minimum. Of all price systems, free access is easily driven by the number of goods produced and demand for these goods to the consumer. At the same time, the level of competition could reach a point in which several companies dominate industry and check the offer and prices and effectively discourage smaller societyN.
The second approach is a fixed price system. A solid system requires a large amount of government regulation and involvement and effectively creates a situation in which government officials call, how the goods are on the market. This also often includes a situation in which companies are only allowed to sell a certain number of goods on the national market, although they can be free to produce and sell as many goods abroad as they choose. Like all pricing systems, this approach provides benefits and obligations, as the reasonable use of the model ensures that consumers have goods that are in line with the economy, but can also create a situation where the potential for competition between companies is maintained to minimum.
hybrid or mixed price system is also a popular option in many countries. Price systems of this type try to combine the best points of fixed even withoutA valid system in a model that benefits all participants without necessarily leading to obligations or disadvantages. With mixed price systems, the role of the government is evident in the business sector, but is limited by a number of controls and balances that still leave enough space for competition and provide consumers with more possibilities of any good or service.