### Why is the concept of elasticity important

##### Reference no: EM13852609

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.

#### Risk averse-risk loving and risk neutral

Lakisha has a utility function for income given by U(I)=√I. Lakisha is ___ (risk averse/risk loving/risk neutral). Lakisha is considering an investment that would give her an

#### Suppose economy has overbuilt-suffers from excess capacity

Suppose an economy has overbuilt and suffers from excess capacity. A recession ensues due to firms cutting back on expenditures. Is deficient demand more easily remedied by mo

#### How would you present the statistical information

Assume you are compiling your research report. How would you present the statistical information within this case to the IndustryWeek decision maker, the manager who must de

Chase is injured in an accident while driving an off-road vehicle made by Drivers Edge, Inc., an out-of-state corporation. Chase files a suit against Drivers Edge, alleging ne

#### The tradeoffs you face with differentiation and the cost

This week, you have a car to sell. You want to purchase a new vehicle and the dealer is offering you, well, almost nothing for the car you have now. So you’re going to sell it

#### Best represented the ethos of texas public servant

Consider the famous governors we have discussed in the lessons. Which of these governors do you believe to have been the most influential in growing the powers of the office,

#### Determine year three constant dollar product selling price

A product that sells today for \$100 per unit is expected to escalate in price by 6% in year one, 8% in year two and 10% in year three. Calculate the escalated dollar year thre

#### What is the firm average cost at this output

The W Company is a member of the beef industry, which is perfectly competitive. The price of a beef is \$60. The firm’s total cost function is TC = 100 + 10Q + 5Q2 where TC is