MBA Information Systems - Managerial Economics Assignment on Inflation

Enrollment No.
: Pugazhendi (Moorthy)
MBA Information Systems 1st Year Assignment

Annamalai University
2: Managerial Economics
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MBA Information Systems Managerial Economics
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Enrollment No.: Pugazhendi (Moorthy)

Question #3: Explain how inflation will affect the economy
of a country with suitable examples.
Answer:Inflation in brief
Inflation means a reduction in the value of money; in other words, a rise in
general price levels. The literal meaning of the word inflation is to blow up or
get bigger. If the amount of money in a country - the money supply - grows
faster than production in that country, the average price will rise as a result
of the increased demand for goods and services. Inflation can also be caused
by higher costs being charged on to the end-user. These might be raw
material costs or production costs which have risen, but could also be higher
tax rates. These price rises cause the value of money to fall. You can
therefore buy less with the same amount of money. But this does not need to
have an immediate effect on purchasing power. Purchasing power only
declines if wages rises less rapidly than prices.
Affect of Inflation on Currency
Westernized countries have economies based on the value of the currency
used to purchase goods. The economic system of the country relies on the
value of the money they use to stay the same. For example, imagine going
to the store and purchasing a 1 dollar candy bar, only to have the clerk tell
you the candy bar now costs 5 dollars. The candy bar hasn't gotten more
expensive, your money is simply worth less. This is an extreme example of
how inflation can affect the economy, but nonetheless demonstrates the
importance of 1 dollar consistently holding the same monetary value.
Typically, inflation occurs at a much more gradual, but still noticeable rate.
Currency and Economy
If the money you have becomes worth less, in terms of the goods and
services you are able to purchase with it, you will need to rearrange your
budget. However, the primary reason that inflation affects the economy so
negatively is the loss of value. For example, you still have the same amount
of actual currency, you are not making more or less money at your job or
splurging for excessive, unnecessary items. Since it is worth less, you need
to use more currency to purchase the same items you always have. The
result is a snowball effect, because inflation affects your boss too, so the
company cannot simply compensate you with additional currency to
compensate for the loss of value.
Impact of Inflation on Economy
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Inflation impacts the economy so significantly because economies are
organized based on the value of currency, both within and outside of the
country. Therefore, we negotiate all financial interactions based on the worth
of our dollar to another country's currency. For example, America may pay a
company in another country to manufacture items and pay their employees
10 dollars a week. While most Americans would scoff at that type of
compensation, due to our currency having a higher value, this is acceptable
to those receiving the payment. Following an extreme period of inflation
without recovering to economic stability, America may need to pay these
same workers 20 dollars a week to provide the same value that 10 dollars
once did.
Types of Inflation
Inflation is when the prices of goods and services increase. There are four
main types of inflation, categorized by their speed: creeping, walking,
galloping, and hyperinflation. There are also many types of asset inflation
and of course wage inflation. Many experts consider demand-pull and costpush to be types of inflation, but they are actually causes of inflation, as is
expansion of the money supply.
Creeping Inflation
Creeping or mild inflation is when prices rise 3% a year or less. According to
the U.S. Federal Reserve, when prices rise 2% or less, it's actually beneficial
to economic growth. That's because this mild inflation sets expectations that
prices will continue to rise. As a result, it sparks increased demand as
consumers decide to buy now before prices rise in the future. By increasing
demand, mild inflation drives economic expansion.
Walking Inflation
This type of strong, or pernicious, inflation is between 3-10% a year. It is
harmful to the economy because it heats up economic growth too fast.
People start to buy more than they need, just to avoid tomorrow's much
higher prices. This drives demand even further, so that suppliers can't keep
up. More important, neither can wages. As a result, common goods and
services are priced out of the reach of most people.
Galloping Inflation
When inflation rises to ten percent or greater, it wreaks absolute havoc on
the economy. Money loses value so fast that business and employee income
can't keep up with costs and prices. Foreign investors avoid the country,
depriving it of needed capital. The economy becomes unstable, and
government leaders lose credibility. Galloping inflation must be prevented.
Hyperinflation
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Hyperinflation is when the prices skyrocket more than 50% -- a month. It is
fortunately very rare. In fact, most examples of hyperinflation have occurred
when the government printed money recklessly to pay for war. Examples of
hyperinflation include Germany in the 1920s, Zimbabwe in the 2000s, and
during the American Civil War.
Stagflation
Stagflation is just like its name says: when economic growth is stagnant, but
there still is price inflation. This seems contradictory, if not impossible. Why
would prices go up when there isn't enough demand to stoke economic
growth? It happened in the 1970s when the U.S. went off the gold standard.
Once the dollar's value was no longer tied to gold, the number of dollars in
circulation skyrocketed. This increase in the money supply was one of the
causes of inflation. Stagflation didn't end until then-Federal Reserve
Chairman Paul Volcker raised the Fed funds rate to the double-digits -- and
kept it there long enough to dispel expectations of further inflation. Because
it was such an unusual situation, it probably won't happen again.
Core Inflation
The core inflation rate measures rising prices in everything except food and
energy. That's because gas prices tend to escalate every summer, usually
driving up the price of food and often anything else that has large
transportation costs. The Federal Reserve uses the core inflation rate to
guide it in setting monetary policy. The Fed doesn't want to adjust interest
rates every time gas prices go up -- and you wouldn't want it to.
Deflation
Deflation is the opposite of inflation -- it's when prices fall. It's caused when
an asset bubble bursts. That's what happened in housing in 2006. Deflation
in housing prices trapped those who bought their homes in 2005. In fact, the
Fed was worried about overall deflation during the recession. That's because
deflation can turn a recession into a depression. During the Great Depression
of 1929, prices dropped 10% -- a year. Once deflation starts, it is harder to
stop than inflation.
Wage Inflation
Wage inflation is when workers' pay rises faster than the cost of living. This
occurs when there is a shortage of workers, when labor unions negotiate
ever-higher wages, or when workers effectively control their own pay. A
worker shortage occurs whenever unemployment is below 4%. Labor unions
negotiated higher pay for auto workers in the 90s. CEOs effectively control
their own pay by sitting on many corporate boards, especially their own. All
of these situations created wage inflation. Of course, everyone thinks their
wage increases are justified. However, higher wages are one element of costpush inflation, and can cause prices of the company's goods and services to
rise.
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Asset Inflation
An asset bubble, or asset inflation, occurs in one asset class, such as
housing, oil or gold. It is often overlooked by the Federal Reserve and other
inflation-watchers when the overall rate of inflation is low. However, as we
saw in the subprime mortgage crisis and subsequent global financial crisis,
asset inflation can be very damaging if left unchecked.
Asset Inflation -- Gas
Gas prices rise each spring in anticipation of the summertime vacation
driving season. In fact, you can expect gas prices to rise ten cents per gallon
each spring. However, political uncertainty in the oil-exporting countries
drove gas prices higher in 2011 and 2012. Prices hit an all-time peak of
$4.17 in July 2008, thanks to economic uncertainty. What do oil prices have
to do with gas prices? A lot. In fact, oil prices are responsible for 72% of gas
prices. The rest is distribution and taxes, which aren't as volatile as oil prices.
Effects of Inflation
Inflation has good as well as bad effects on the economy. In the initial stages,
mild inflation may create an all-round expansion of business activity and this
proves beneficial to the economy. Inflation is good up to the stage of full
employment. But the trouble is that the rise in prices is not uniform
throughout the economy and there may be distortions due to inflation
causing many imbalances. Lets see effects of inflation on various sections
of the society
On producers
Inflation is a period of boom and prosperity for the producing classes. All
businessmen, traders, speculators gain during inflation because of (a)
windfall profits and (b) appreciation in the value of their stock. Normally,
there is a time-lag between a rise in the prices of commodities and rise in the
cost of production. Prices of goods increase at faster rate during the period of
inflation and the cost of production lags behind as wages, interest, insurance
etc. are almost fixed. This gives enormous scope for windfall gain. Further,
with the fall in the value of money, businessmen try to appreciate the value
of their stock. Thus, inflation is a blessing in disguise to the business class at
the initial stages.
On Working Class
Working class suffer during inflation, as their wages do not rise
proportionately with the rise in prices and cost of living. These days workers
of the organized group do not suffer much as they react faster during the
inflation. Whereas other unorganized groups like self employed and
agriculture labours find it very difficult during inflation. The condition is
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equally distressing for those workers, who have little bargaining power from
their organizations.
On fixed income groups
This is the worst hit class during inflation. People living on past savings, fixed
interest, on investments, pensioners, salaried class like teachers and
government employees find inflation and rising in prices very agonising, as
their fixed purchasing power decline in the face of mounting cost of living.
This class of people, called the middle income group, which form the bulk of
the society become the worst sufferers.
On Distribution
Inflation has bad effect on distribution too. Since rise in price and rise in
income may not be uniform in all sectors and sections of the economy there
will be distortions and imbalances causing bottlenecks in distribution and
fluctuation in production and effective distribution. For instance, during
inflation the price of industrial goods go up rapidly and prices of agriculture
produce are not so flexible. The returns of farmers diminish and their
economic condition deteriorates due to mounting cost of commodities and
industrial product which they must buy. The net result will be that some
classes enjoy the benefits of inflation while others suffer from it.
On debtors and creditors
During the inflationary period the debtors (borrowers) gain much while
creditors (lenders) lose heavily. When prices rise, the real value of money
falls and the debtors have to pay money which has less purchasing power.
This will be beneficial to debtor while the creditor will be getting back
amount whose value of purchasing power has declined.
On Government
The government too will be affected by the inflation. The public sector
undertaking may have to raise the expenditure level due to a fall in the value
of money. Alternatively they would cut the size of the projects and
programmes to meet with the original budgeted expenditure. On other hand
government will be benefited during inflationary period, as it is a largest
borrower as we have in the case of debtors.
Social Consequence
If inflation is persistent and severe, it has baneful influence on society. It
makes rich richer and poor poorer. There is an all-round frustration among
the salaried and fixed income groups. The producing and trading classes gain
at the expense of salaried fixed income groups. Thus there is transference of
income from poor to rich. Due to enormous rise in prices and scarcity of
essential commodities, there is black-marketing, hoarding and profiteering.
Inflation becomes social menace and political problem if necessary steps are
not taken.
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Effects of inflation on Economy of a country
Inflation and the economy of a country are closely related. The effect on the
economy of any country is not immediate or it does not affect the economy
overnight. There is a cumulative effect. Several such changes build up to
bring about a big change. The economy of a country is affected by inflation
in a number of ways.
Inflation and the economy both influence all the major macroeconomic
indicators of a country. The various macroeconomic indicators include the
following:
Gross domestic product or GDP, Producer price index (industrial),
Consumer price indices, Industrial production, Capital Investment,
Agricultural production, Export, Import, Demography, Debt
Inflation not only affects the macroeconomic indicators, it affects the living
standards of the people. The exchange rates of all currencies also change.
This in turn influences trade. When exchange rates are affected, the interest
rates cannot be far behind.
Inflation and its effect on economy are enormous. In other words, all events
are interlinked and the entire economic cycle gets upset.
For Example:
The mortgage crisis of 2007 in USA could best illustrate the ill effects of
inflation. Housing prices increases substantially from 2002 onwards, resulting
in a dramatic decrease in demand.
India after independence has had a more stable record with respect to
inflation than most other developing countries. Since 1950, the inflation in
Indian economy has been in single digits for most of the years, as shown in
the following table
Period
Avg. Inflation
rate
2.00%
19501960
19607.20%
1970
19708.50%
1980
In early 2007, in India, the inflation rate, as measured by the wholesale
price index (WPI), hovered around 6-6.8%, well above the level of 5-5.5%
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that would have been acceptable to the Reserve Bank of India (RBI), the
country's central bank. On February 15, 2007, the inflation rate reached a
two-year high of 6.73%. In the past, the main cause of high inflation in
India used to be rises in global oil prices. However, in early 2007, the chief
component of the inflation was the increase in the prices of food articles caused by increased demand as well as supply constraints. According to
analysts, the increased demand was due to high economic growth and
increased money supply, while stagnant agricultural productivity was
behind the supply constraints.
Apart from the rise in prices of food articles, fuel and cement prices too
recorded high increases. The Government of India, together with the RBI,
took several measures to contain inflation. For example, the RBI increased
the Cash Reserve Ratio (CRR) and repo rates in an effort to check money
supply; the Government of India reduced import duties on several food
products and cut the price of diesel and petrol.
The RBI also chose not to intervene when the Indian Rupee rallied against
the US Dollar between March 2007 and May 2007. The decision not to
intervene was based on the idea that a stronger Rupee would bring down
the cost of imports, which, in turn, would help reduce domestic prices of
goods. Though the measures taken by the GoI were targeted at inflation,
some analysts feared that some of these measures, especially the ones
leading to higher interest rates, might induce recession in the Indian
economy. There were others who felt that letting the Rupee rise would not
only have a negative effect on the bottom lines of companies that earn a
substantial percent of their profits from exports, but also impact the longterm competitiveness of Indian exports.
Inflation in India a menace a few years ago is at a 30 year low. The
inflation ended at a low of 0.61% in the week ended May 9, 2009 this
after reaching a 16 year high of 12.91 % in August 2008, bringing in a
sigh of relief to policymakers.
Following diagram illustrates current inflation rates in India.
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INDIA STOCK MARKET (SENSEX)
**** END OF ANSWER ****
Question #4: Explain pricing methods and which method

will be suitable in present age?
Answer:MBA Information Systems Managerial Economics
Page | 9

Introduction
There are many practical pricing methods adopted by the firms, based on
different considerations. While fixing the price, the firm is guided by some
objectives such as, profit maximisation, sales maximisation, establishing a
favourable image with the public or limiting competition, etc. Every firm sets
certain objectives and tries to accomplish them.
Formulating price policy and adopting a particular pricing method is often a
critical factor in the successful operation of a business organization. Even
though the basic problem of pricing is the same for all firms (i.e. Costs,
Competition, Demand, and Profit), the optimum mix of these factors varies
according to the nature of the products markets and the overall objective of
the firm. Thus, the job for the management is to develop and adopt an
appropriate pricing method that meets the needs of the company.
Pricing Methods
Generally businessmen prefer a pricing procedure which is easy to

implement and requires only few assumptions on demand. The various
pricing methods usually employed by businessmen are
Methods Based on Cost
Cost-Plus or Full-Cost pricing
Target pricing or pricing for a rate of return
Marginal pricing
Methods Based on Competition and Market
Going-rate pricing
Customary pricing
Differential pricing
Methods Based on Cost

Cost-Plus or Full-Cost pricing: The full-cost pricing method is generally
adopted by many of the firms for its simplicity and ease. This method is also
called Cost-plus pricing, Margin pricing and Mark-up pricing. Under this
method, the price is set to cover all costs (material, labour and overhead)
and predetermined percentage for profit. Which means the selling price of
the product is computed by adding percentage to the average total cost of
the product. The percentages added to the cost are called margins or markups. These percentages vary from firm to firm and product to product in the
same firm. Firms using this method should take the following costs into
consideration.
Variable and fixed production costs
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Variable and fixed selling and administrative costs
The mark-up of profit is determined based on variety of considerations. It
may be based on common tradition laid down in particular business or it may
be determined by trade associations or guide lines if any provided by the
government.
For example:
The fixed costs to produce an item are Rs300000, the variable costs add up
to Rs100000, and the estimated number of units to be produced is 50,000.
Add Rs100000 to Rs300000, divide by 50000, and the true unit cost equals
Rs8. If the desired return on sales is 20%, divide Rs8 by 1 minus .20, and the
cost-plus price for this item will be Rs10.
Advantages
It helps in setting fair and plausible prices.
It is easy for application by all types of firms.
This method safeguards the interest of the firm against risks due to
uncertain demands.
It economical for decision making.
If adopted by all businessmen, it may help protect the firms against
price wars or self damaging price competition and at the same time it
provides flexibility to adjust price based on variation of costs.
This method is best while dealing with uncertainty and ignorance.
Drawbacks
Totally ignores influence of demand.
Fails to reflect the forces of competition adequately.
Cost is regarded the main factor influencing the price.
Undue importance is given for the precision of allocating of costs.
This method is based on circular reasoning. Which means price
determines quantity demanded; price charged is dependent upon cost
per unit and the cost, in turn, depends upon the quantity demanded.
It ignores marginal or incremental cost and uses average cost instead.
In spite of drawbacks this method is useful in product tailoring, custom
design products, monopsony buying and public utility buying.
Target pricing or pricing for a rate of return:
This method of pricing is only a refinement of the full-cost pricing. According
to this method manufacturer considers a pre-determined target rate of
return on capital invested. In the case of full-cost pricing, the percentage of
profit is marked up arbitrarily. In the case of rate of return method, the
companies determine the average mark-up on costs necessary to produce a
desired rate of return on the companys investment.
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In this case the company estimates future sales, future costs, and arrives at
a mark-up that will achieve a target return on the companys investment.
Davis and Hughes have used the following formula to calculate the desired
rate of return when a mark-up is applied on cost
Percentage
mark-up on
cost
Capital employed
Total annual cost
Planned
rate of
return
For Example:
Suppose the capital employed by a firm is Rs.6 lakhs and total annual cost id
Rs.12 lakhs with a planned rate of return of 20 percent.
Then percentage mark-up is = (6/12) * 20 = 10%
Now suppose the total cost per unit in the firm is Rs.20 with 10 percent
mark-up the selling price would be Rs.22.
In any business price policy is profit oriented. A company cannot blindly stick
to the mark-up which has been decided based on the capital employed.
Change of costs compels company to revise the prices. To overcome this
problem, three different methods are followed
Revising the prices to maintain constant percentage mark-up over
costs.
Revising the prices to achieve estimated sales to maintain percentage
of profit.
Revising the prices to achieve a constant rate of return on capital
invested
Changed percentage may be computed as below
Percentage over cost
Percentage on sales
Percentage on capital employed
= Profits / Costs
= Profits / Earnings from sales
= Profits / Capital employed
The major drawback of this procedure is that it ignores demand condition.

Marginal Cost Pricing
Under marginal cost pricing method, the price of a product is determined on
the basis of the marginal or variable costs. In this method fixed costs are
totally ignored and only variable costs are taken in to consideration. This is
done on the assumption that fixed costs are caused by outlays which are
historical and sunk. Their relevance to pricing decision is limited, as pricing
decision requires planning the future. Under marginal cost pricing, the
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objective of the firm is to maximise its total contribution to fixed costs and
profit.
For Example:
Aircraft flying from Delhi to Kochi
Total Cost (including normal profit) = Rs15,000 of which Rs13,000 is
fixed cost*
Number of seats
= 160, average price = Rs93.75
MC of each passenger
= 2000/160 = Rs12.50
If flight not full, better to offer passengers chance of flying at Rs12.50 and fill
the seat than not fill it at all!
Advantages
Marginal cost pricing is highly useful for public utility undertakings. It
helps them in maximising output and better capacity utilization. This is
possible only when lowest possible price is charged. The lowest limit is
set by marginal cost of the product, which helps in maximising public
welfare.
This method enables the firms to face competition. This is the reason
why export prices are based on marginal costs since international
market is highly competitive.
This method helps in optimum allocation of resources and as such it is
the most efficient and effective pricing technique and it is useful when
demand conditions are slack.
Marginal cost pricing is suitable for pricing over the life-cycle of a
product. Each stage of the life-cycle has separate fixed cost and shortterm marginal cost.
In the modern business marginal is cost pricing method is more effective
compares to full-cost method due to following two characteristics
The prevalence of multi-product, multi-process and multi-maker
concerns makes the absorption of fixed costs into product costs is
absurd. The total cost of separate products can never be estimated
perfectly and satisfactorily, and the optimal relationship between costs
and prices will vary substantially both among different products and
different markets. In this type of business, proposals to changing the
prices in terms of sales and segmentation of the market can be
profitability employed only with short-run problems and marginal
pricing is the most suitable method of short-run pricing.
In business, dominant force is innovation combined with constant
technology. The long-run situations are often unpredictable. Hence,
short-run marginal cost pricing is most suitable.
Limitations
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Firms may find it difficult to cover up costs and earn a fair return on
capital employed when they follow marginal cost principle in times of
recessions when demand is slack and price reduction becomes
inevitable to retain business.
When production takes place under decreasing costs, marginal cost
pricing is unsuitable since MC curve will be below the AC curve and
marginal cost pricing is bound to lead to deficits.
Marginal cost pricing requires a better understanding of marginal cost
technique. Some accountants are not fully conversant with the
marginal techniques themselves. Therefore, they are not capable of
explaining their use to the management.
In spite of its advantages, due to its inherent weakness of not ensuring the
coverage of fixed costs, marginal pricing has not been adopted extensively. It
is confined to cases of special orders only.
Methods Based on Competition and Market

Going-Rate pricing
This method of pricing conforms to the system of pricing in oligopoly where a
firm initiates price changes and other firms in the industry follow the pattern
set by the leader. Other firm accepts the leadership. The emphasis here is on
the market. Firms make necessary price adjustment to suit the general price
structure in the industry. Hence this going-rate pricing method is also called
as Acceptance-pricing. Normally, under this method, the industry tries to
determine the lowest price that the seller can afford to accept considering
various alternatives.
For Example:
Going-rate pricing include industries like clothing, automobile, long-playing
records, etc., where the products have reached a stage of maturity and
where both customers and rival produces have become accustomed to
stable price-relationship.
When products are identical, unique selling price will rule. When they are
differentiated, prices will form a series, set at discrete intervals.
Advantages
It helps in avoiding cut-throat competitions among the firms.
It is a rational pricing method when costs are difficult to measure.
Going-rate or acceptance pricing is less troublesome and less costly
since exact calculation of costs and demand is not necessary.
It is suitable to avoid price hazards in oligopoly market.
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Customary Pricing
Price of certain goods becomes more or less fixed for a considerable period
of time, not by deliberate action on the sellers part, but as a result of their
having prevailed for a considerable period of time. Only when the costs
change significantly, the customary prices of these goods are changed. While
changing the customary price, it is necessary to study the pricing policies
and practices adopted by the competing firms. Another approach is to effect
price change only in a limited market segment and know the customer
reaction to decide whether any change would be digested by the market.
Customary price may be maintained even when products are changed.
For Example:
The new model of a mobile phone may be priced at the same level as the
discontinued model. This is usually so even in the face of lower costs. A low
price may cause an adverse reaction on the competitors leading them to a
price war as also on the consumers who may think that quality of the new
model is inferior. Hence, going along with the old price is the easiest thing to
do.
Differential Pricing
Identical products are priced differently for different types of customers,
markets or buying situations. An important aspect of differential price is price
discrimination.
Differential pricing enables companies to profit from their customers' unique
valuations by offering different customers different prices for the same
product.
For Example:
At a cinema, customers who paid full price, used coupons, received discounts
(senior, student, under 12 and AAA etc.) or purchased prepaid discount
passes from Super Market can all be sitting next to each other watching the
same movie. Offering this spectrum of prices enables cinemas to maximize
profits by serving customers with a variety of different valuations.
Consider the pricing behaviour at an auction. Everyone has the same
information and bids on the same item. As prices increase, bidders drop out.
Those who drop out are in essence saying, "I know others are willing to pay
higher prices, but I just don't value the item as much as they do."
Differential pricing tactics can be grouped as:
Requiring customers to jump hurdles (coupons, rebates, sales, price
match guarantees, time in sales cycle, distribution outlet).
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Customer characteristics (different prices based on where customer
lives, readily available traits such as age, affiliations, purchasing
history).
Selling characteristics (discounts for volume purchases, bundles,
different next best alternatives).
Selling strategy (negotiation, razor/razor blade pricing, metering, and
dynamic pricing).
The range of prices created by differential pricing contributes to the pricing
windfall with larger margins from higher prices and growth by using
discounts to sell to more customers.
The end result of implementing these four strategies is a multi-price strategy.
By this, I mean a set of publicly known prices and plans for a company's
products composed of: (1) a value-based price, (2) new pricing plans, (3)
versions, and (4) a range of prices.
Tips for Successful Pricing

Good product prices are important to any successful business. Pricing takes
creativity, time, research, good recordkeeping and flexibility. You need to
balance the costs of producing a product with competition and the
perceptions of your target customer to select the right product price. Follow
these tips to ensure greater pricing success.
Be Creative: Think of new ways to sell more to existing customers or

to attract new customer groups.
Listen to the Customer: Make a point of noting customer comments

in a journal or file. Review them periodically to glean new ideas.
Do the Homework: Keep good notes of how the price arrived so it

can make similar assumptions in the future.
Boost the Records: Good recordkeeping will help to set a price and to
track the performance of the pricing.
Cover the Basics: The three basics of pricing are product price,
competition and customers. Blend pricing methods to ensure the three
basics are in balance.
Be flexible: Constantly review both internal and external factors and

calculate how a price change would affect the new situation.
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**** END OF ANSWER ****
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MBA Information Systems 1st Year Assignment

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Enrollment No.: Pugazhendi (Moorthy)

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