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 sales price 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.

Question

A health study tracked a group of persons for five years. At the beginning of the study, 20%were classified as heavy smokers, 30% as light smokers, and 50% as nonsmokers. Resultsof the study showed that light smokers were twice as likely as nonsmokers to die duringthe five-year study, but only half as likely as heavy smokers.A randomly selected participant from the study died during the five-year period. Calculatethe probability that the participant was a heavy smoker

Answer 1

Question

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 sales price 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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