Concept of elasticity-inelastic in short run and long run

Assignment Help Business Economics
Reference no: EM13859923

Why is the concept of elasticity important? What does it tell economists? Tell whether you would classify automobile production as either elastic or inelastic in the short run and long run. (Keep in mind that we are talking here about supply elasticity, not demand elasticity.) Explain your answer using determinants of elasticity.

Reference no: EM13859923

Questions Cloud

Modified to sell them as fixed-gear bikes : Joey, David, Tracy, and Surly own one track bicycle apiece, and they\'ve each modified to sell them as fixed-gear bikes or \"fixies.\" Joey is willing to sell his bike at $100 or more. Maintain the orientation of each bar when creating the graph (i.e..
Indifference map and budget constraint for goods : Mary's indifference map and budget constraint for goods x and y are shown below. If Mary spends all her money on x and y which bundle will she choose to maximize her utility?
What will be the mean of the annual return of this portfolio : A friend wants your advice. His aunt recently left him $100,000 that he must invest in one or both of two different corporations. The current price per share of each is $100. If your friend buys 1000 shares of the first corporation, what will be the ..
Evaluate the wisdom of the firms pricing policy : The Hanover Manufacturing Company believes that the demand curve for its product is. Evaluate the wisdom of the firm's pricing policy. A marketing specialist says that the pricing elasticity of demand for the firm's product is - 1.0. is this correct?
Concept of elasticity-inelastic in short run and long run : Why is the concept of elasticity important? What does it tell economists? Tell whether you would classify automobile production as either elastic or inelastic in the short run and long run. (Keep in mind that we are talking here about supply elastici..
Implementing program of social responsibility : The company you work for recently has committed itself to implementing a program of social responsibility. After the company has gotten the commitment of top executives, planned the program, and appointed a program director, you suggest that a (n) __..
Identify specific organizational skills : The HRM specialists at A&C Company took the opportunity to increase productivity and decrease manual data analysis by using their microcomputer along with a commercial database management system (DBMS) to develop a __________. Now the company can rea..
Probably inspected for hazardous conditions by personnel : When the American Telephone and Telegraph Company (AT&T) was recently building a new, multistory complex in downtown Kansas City, the work site was probably inspected for hazardous conditions by personnel from the
Competitive-unregulated market-externalities and utility : A competitive, unregulated market would. Utility is the. Externalities

Reviews

Write a Review

Business Economics Questions & Answers

  Utility function-non-labour income decreased

Woody's utility function is U(C, R)= C- (12-R)^2, where C is his consumption and R is the amount of leisure he has per day. He has 16 hours a day to divide between work and leisure. He has an income of 20$ a day from non-labour sources. If Woody can ..

  Number macroeconomic variables decline during recessions

A number macroeconomic variables decline during recessions. One of these variables is the GDP. What other variables, besides real GDP, tend to decline during recessions? Given the definition of real GDP and its components, explain the declines in the..

  Kinds of international strategies are most appropriate

When companies expand into the international arena, they do so either because their home market has matured or because they see real opportunities in the foreign market. Discuss which kinds of international strategies are most appropriate for compani..

  Which your cousin attended a nearby elementary school

Rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve.

  Evolution of cokes strategy

Illustrate what does the evolution of Coke's strategy tell you about the convergence of consumer tastes and preferences.

  Arguments for public subsidies for education are based upon

Arguments for public subsidies for education are based upon: The cobweb model of educational attainment is most likely to be applicable when:

  Explain how much does his weekly budget have to rise for hug

Derive and plot Hugo"s Engel curve for donuts. Explain how much does his weekly budget have to rise for Hugo to buy one more donut per week.

  Janice wallermthe manager

Janice Wallermthe manager of the customer service depart at First Bank of Jefferson County,can hire employees with a high school diploma for $20,000 and employes with a bachelor's degree for $30,0000.

  What is its nominal interest rate

Suppose the Canadian economy, on a fixed exchange rate, has a real growth rate of 2% and is in equilibrium with an inflation rate of 10% and a risk premium of 1%. Suppose changes in the U.S. cause its real rate of interest to increase from 3% to 4% a..

  Distinguish between the two types by observation

The Soup Nut serves his signature minestrone soup in two different bowl sizes, large and small. What strategy should he use to extract the most surplus possible out of customers who come in two types, regular and big eaters, when he cannot distinguis..

  Illustrate what can be said about utilization of resource

Illustrate what can be said about the utilization of resources when 20 airplanes and 20 buses are produced. What is the opportunity cost of increasing the production of airplanes from 50 to 60? From 0 to 10 airplanes.

  Impact on economy and business owners

The article is titled -NY State Wage Board Recommends $15/Hour Pay By 2021 For Fast Food Workers. Please write a reaction memo 1 page single spaced as to your thoughts, ideas, impact on economy, business owners, etc...be creative

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd