EBK MICROECONOMICS
4th Edition
ISBN: 9781319115890
Author: KRUGMAN
Publisher: MPS (CC)
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Chapter 6, Problem 9P
To determine
To Explain:
The nature of the elasticity of supply in the following situations:
- This summer, a rise in
demand for luxury cruises results in a huge increase in the salesprice of a cabin on the Queen Mary 2. - The price of a kilowatt of electricity is the same during the period of high electricity demand as during the period of low electricity demand.
- A very small number of people want to fly during the month of February than during any other month. The airlines cancel about 10% of their flights as ticket prices decrease about 20% during February.
- Owners of vacation homes in Marine rent them out during the summer. Due to down turn in the economy this year, a 30 % decline in the price of a vacation rental leads more than half of hometowns to occupy their vacation homes themselves during the summer.
Concept Introduction:
Elasticity of Supply:
The degree of responsiveness of quantity supplied in response to the change in the price of the product.
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How To Understand Elasticity (Economics); Author: Market Power;https://www.youtube.com/watch?v=1XXhpHJTglg;License: Standard Youtube License