d.An increase in the world demand for pulp increases the price by 14 percent. Annual Canadian production increases from 8 million tons to 11 million tons.
state the relevant elasticity concept. Then compute the measure of elasticity. Where appropriate, use the average prices and quantities in your calculations. In all cases, assume that these are ceteris paribus changes.(20)
2007-02-08 07:05:46 · 2 answers · asked by Chris 2 in Social Science ➔ Economics
You are looking for the price elasticity of supply. Here is how it is calculated: % change in supply / % change in price.
So, percentage change in supply is calculated as (11-8)/8= 37.5%. Change in price was 14%.
37.5%/14%= 2.68
2.68 is the price elasticity of supply for pulp.
2007-02-08 07:36:23 · answer #1 · answered by theeconomicsguy 5 · 0⤊ 0⤋
So I guess you're against Obamacare? I have good insurance through Aetna, I'm not changing it. But we can't tell the insurance to pay their CEO less and it will continue to rise. And think of all the overcharges we see, like $10 for a couple of aspirin. The repeated tests, the redundancy of the equipment and so forth. I think the Govt would do a good job of keeping the prices down. Both Medicare and Social Security are well run systems. Even the USPS is well run but have to follow ridiculous rulings set by Congress for retirement funds. And they will have affordable premiums and even some discounts for the poor. If you don't want the insurance stay on what you have. If you can't afford it they can help. And you'll say why should I care about them? As a guy I chatted with momentarily said, I can't afford insurance, I'd have to go to the ER. Stopping that will be a great savings to those involved.
2016-05-23 22:00:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋