Question

explain the profit push
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Answer 1

The three common ingredients of such theories are:

(i) That the upward push in costs is autonomous of the demand conditions in the concerned market;

(ii) That the push forces operate through some important cost component such as wages, profits (mark-up), or materials cost. Accordingly, cost-push inflation can have the forms of wage-push inflation, profit-push inflation, material-cost-push inflation, or infla­tion of a mixed variety in which several push factors reinforce each other; and

(iii) That the increase in costs is passed on to buyers of goods in the form of higher prices, and not absorbed by producers. We now discuss the three major kinds of cost-push inflation identified above.

Answer 2

Answer:

in case of such admiinistered prices when markup or profit margins are pushed up without increasing coast or in demand