p Price Determination 2( p It should be noted that there is no reason to 2p believe u and g are always fixed One could think of u as being a reflection of the market condition in general industry while q as being determined by import price, change in productivity among others. All these can be regarded as supply shockPrice Determination • It should be noted that there is no reason to believe µ and q are always fixed. One could think of µ as being a reflection of the market condition in general industry while q as being determined by import price, change in productivity among others. All these can be regarded as supply shock