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‘Building Blocks Producers are Making Abnormal Profits and Exploiting Consumers’
Dear editor,
In the recent past, the price of cement has reduced from K85 to K56 but the price of a building block or a brick has remained expensive at the same price.
Market forces will take long on their own to establish price equilibrium. This should be a shift of the demand curve and not movements along the demand curve.
Let Government intervene. The block makers are making above equilibrium abnormal profits.
Market forces will take long on their own to establish price equilibrium. This should be a shift of the demand curve and not movements along the demand curve.
Let Government intervene. The block makers are making above equilibrium abnormal profits.
This is exploitation of consumers and should thus be regulated in the short term.
Edify Hamukale
Agriculture Economist
Posted by Kunda
on September 26, 2015. Filed under LATEST NEWS.
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New Educated Zambia©❤√
September 26, 2015 at 11:28 pm
Some one under the pf is gaining from this. We know what is happening. Vote upnd
mj banda
September 27, 2015 at 12:00 am
Just buy your own machine and build blocks for yourself.
kakolwe
September 27, 2015 at 3:15 am
Correct @MJ Banda. Even when the price of cement was high, making your own blocks could cut the cost by a quarter of the total cost.
Neutral
September 27, 2015 at 1:47 am
While your observation is valid but it is overshadowed by the valueless Kwacha. Please apply all forces currently at play.
When cement was at K85 profit margins were still abnormal that’s why Dangote could peg the price at K56 while exchange rate was K8/$1.
Now with the rate cruising towards K13/$1 expect
even Dangote to increase their prices soon.
A zambian
September 27, 2015 at 7:37 am
KWENA CACINE DANGOTE ALIBWESHA CEMENT