The basic idea is to use the price-cost margin and the threshold price increase, say, 5 per cent, to calculate what share of sales could be lost while leaving the hypothetical monopolist's profits unchanged.

(b) The elimination of the 2 per cent threshold for effecting consumer price index adjustments for beneficiaries;

The strategic shift is also a deliberate effort by Chinesepolicymakers to avoid the dreaded “middle-income trap” – amid-stage slowdown that has ensnared most emerging economies whenper capita income nears the $17,000 threshold (in constantinternational prices).

The selection procedure if tendering is used may involve subjecting all tenders that receive a technical rating above a set quality or non-price threshold to a straightforward price competition (article 42), may involve the procuring entity's negotiating with suppliers, after which suppliers submit their best and final offers (article 43), or may involve the procuring entity's holding negotiations solely on price with the supplier that obtained the highest technical rating (article 44).