Question:

Economics.. help please?

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we own this newspaper company,, the vendors we used to sell them to are on strike because they wanted us to raise the price on our cover page higher than 12 pesos..

how can i present this economically, a really long statement or something.. please help..

i've already put all the things i could think of,, please, i need ur help.. thanks,, :)

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2 ANSWERS


  1. Is this on the Mexican inflation?

    Let me try:

    Due to hyperinflation, vendors are pressurizing newspaper firms to reprice the newspaper to 12 pesos so as to overcome the continuously rising prices.


  2. You could do market demand analysis to figure out if profits will rise after such changes, another approach could include competitors analysis - this increase in price may lead to loosing market share because customers may switch to another newspapers (in short-run or in long-run).

    But of course it's better to have some consultations with your economists who knows local market better, disposable income dynamics, PR,  competitor reaction, inventories condition, and costs/profits analysis are also important - so there is not enough data to give you well argumented answer.

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