IDEAS home Printed from
   My bibliography  Save this article

Price Formation And Balance Relationships


  • Sh. Turetskii


Changes in enterprise cost of production influence only the profitability and finances of the individual enterprise. Changes in wholesale prices, on the other hand, are reflected in the economics of production, in finances, and in the profitability of many enterprises and branches acquiring or selling products for the new prices. When wholesale prices are raised, there is an increase in the proceeds (and hence in profitability) of the manufacturing enterprises and a corresponding increase in the outlays of customer-enterprises. As a result of a "chain reaction," price changes affect the economics of all stages of production all the way down to the manufacture of the final product. The total increase or decrease in proceeds resulting from price changes on products sold equals the total reduction or increase in outlays entailed in the acquisition (purchases) of these products. Such a monetary balance equality determines the essential relationships in the national economy and reveals the basis interrelations among branches and enterprises. This equality is the result of the nonuniform dynamics of outlays, and in an economic sense reflects the unity of outlays and proceeds that is manifested in distributive and redistributive relations in the case of planned changes in price.

Suggested Citation

  • Sh. Turetskii, 1970. "Price Formation And Balance Relationships," Problems of Economic Transition, Taylor & Francis Journals, vol. 13(4), pages 21-35.
  • Handle: RePEc:mes:prectr:v:13:y:1970:i:4:p:21-35 DOI: 10.2753/PET1061-1991130421

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:prectr:v:13:y:1970:i:4:p:21-35. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.