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High demand, low input cost


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FIRMS in Pakistan know very well that their profits will go up if there is high demand and low-input cost. Some services sectors are using this tool and charging more while, on the other hand, consumers in Pakistan are unaware whether the government will come forward to rescue them.

Some services sectors have inelastic demand and consumers are forced to pay whatever they demand, especially in the absence of good substitutes.

It is high time for the Competition Commission of Pakistan took charge and curbed illegal, unethical and overcharging practices to provide a level playing field to other small wholesalers and markets.


Comments (1) Closed

Mahmood A Minhas Jul 23, 2012 12:59pm
The writer has correctly indicated the market position of the commodities. This is the economic formula of demand and supply.where the prices increase the damand increased. No service sectors want to get loss on their product. It is the responsibility of the government to control over inflation and we failed in this matter. The government regularly announces before ramzan and extend billion of rupees as subsidiary. Despite of this the prices of daily uitilites go up more than two hundred percent and consumers are forced to purchase. Who get the benefits of subsidiary ?