The price of U.S.-produced long grain rice fell by 40 percent from January 1999 to January 2000. In response to the price fall, growers of U.S. long grain rice planted 17 percent less on acreage in 2000. If the harvest also decreases by 17 percent. 2a. How would you describe the supply of U.S. long grain rice (Elastic, Inelastic, Unit Elastic)? 2b. Calculate the price elasticity of supply of U.S.-produced long grain rice? 2c. If the price of long grain rice remains the same, do you think the elasticity of supply will change over the coming years?
The price of U.S.-produced long grain rice fell by 40 percent from January 1999 to January 2000. In response to the price fall, growers of U.S. long grain rice planted 17 percent less on acreage in 2000. If the harvest also decreases by 17 percent. 2a. How would you describe the supply of U.S. long grain rice (Elastic, Inelastic, Unit Elastic)? 2b. Calculate the price elasticity of supply of U.S.-produced long grain rice? 2c. If the price of long grain rice remains the same, do you think the elasticity of supply will change over the coming years?
Chapter1: Making Economics Decisions
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2. The price of U.S.-produced long grain rice fell by 40 percent from January 1999 to January 2000. In response to the price fall, growers of U.S. long grain rice planted 17 percent less on acreage in 2000. If the harvest also decreases by 17 percent.
2a. How would you describe the supply of U.S. long grain rice (Elastic, Inelastic, Unit Elastic)?
2b. Calculate the price elasticity of supply of U.S.-produced long grain rice?
2c. If the price of long grain rice remains the same, do you think the elasticity of supply will change over the coming years?
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