The 2019/20 Australia Bushfires affected food production nearly in New South Wales, Queensland and Victoria that are regarded as the food basket for Australia. Assume that before, the bushfire, in 2017/18 Australia produced 80,000 metric tons. Also, assuime that after the bushfire devastation in 2019/20 Australia produced 50,000 metric tons of rice. Finally, assume that during the same period 2017/18 and 2019/20 the price rice in Australia rose from AUD 1.75 per kg to AUD 3.00 per kg respectively. 1. Use the mid-point approach to calculate the price elasticity of demand for rice in Australia. 2. What is the price elasticity of demand for rice? Based on your answer, is rice a necessity commodity? Explain your answer.
The 2019/20 Australia Bushfires affected food production nearly in New South Wales, Queensland and Victoria that are regarded as the food basket for Australia. Assume that before, the bushfire, in 2017/18 Australia produced 80,000 metric tons. Also, assuime that after the bushfire devastation in 2019/20 Australia produced 50,000 metric tons of rice. Finally, assume that during the same period 2017/18 and 2019/20 the
1. Use the mid-point approach to calculate the
2. What is the price elasticity of demand for rice? Based on your answer, is rice a necessity commodity? Explain your answer.
The price elasticity of demand is associate economic datum that measures the rise within the amount of a commodity's demand or consumption in response to a price modification. value snap may be a thought utilized by economists to elucidate however provide and demand fluctuate and to understand however the $64000 economy works despite value changes.
A demand sensible, generally called a needed sensible, may be a variety of traditional sensible in social science. customers can acquire necessity things and services no matter their financial gain levels, creating them less subject to financial gain fluctuations. A public-service corporation produces some essential things.
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