What Is Price Impact?

definition

Price effect equation

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definition

Price effects equation In an economic system, an equation that affects the prices of products in other sectors when the prices of products in some sectors change. If there are n sectors in the economic system, the first k (1 k <n) sector products The column vector for the price change is

Affected by it, the prices of products in other sectors will also change, and recorded as Yishi-

Where A. One*,. One * is a sub-block composed of the last nk rows and the rear nk columns in the direct consumption coefficient matrix A, Ak ,, and one * is a sub-block composed of the first k rows and the rear nk columns in the matrix A, 1. One * one * is a nk-order unit array. If the department whose product price changes in advance is not the first k departments, you can rearrange the order of the product departments so that the product price changes in the first k positions, but this will not change. The essence of the equation. Using the price effect equation, when the price of some products changes, the fluctuation range of the prices of other products and the impact on production and employment in various sectors can be calculated. Decision makers provide the best price change policies. ^[1]