What is the cross elasticity of supply

Assignment Help Business Economics

Reference no: EM13851912

1. When the price of wheat rises from $2.34 to $2.46, some farmers switch crops, and the amount of barley offered on the market falls from 101 million bushels to 99 million. What is the cross elasticity of supply?

2. When the wage rate rose from $6.25 per hour to $6.75 per hour, employment in Fastfood, Inc. fell from 5,100 to 4,900. What is the price elasticity of demand for labor?

3. Explain why, when the price of good changes, the price elasticity of demand is likely to be higher or lower as a longer period of time elapses. Consider as an example the OPEC oil price increases in the 1970s.

Reference no: EM13851912

Questions Cloud

Texaco provides labor-management training : 1. What do these new supervisors need to know about labor relations and the collective bargaining process

Calculate the concentration of all ions : Problem: Calculate the concentration of all ions present in each of the following solutions of strong electrolytes.

What minimum increase in sales would be necessary : Artsy T-Shirts sells 100,000 shirts a year, priced at $14 each. The company can produce any number of shirts at a constant cost of $10 each. It is considering expanding its sales by lowering the price to $12. What minimum increase in sales would be n..

How could project cost influence an organizational structure : How could Project cost influence your choice for an organizational structure? Explain your answers in as much depth as possible.

What is the cross elasticity of supply : When the price of wheat rises from $2.34 to $2.46, some farmers switch crops, and the amount of barley offered on the market falls from 101 million bushels to 99 million. What is the cross elasticity of supply? When the wage rate rose from $6.25 per ..

Purchase new hummer : You decided to purchase a new hummer for 60,000. If the dealer offers a $5000 rebate, what would your monthly payments be if your interest rate is 6.5% and you pay it off in 4 years?

Consider the current economic conditions-including inflation : Consider the current economic conditions, including inflation and economic growth. Do you think the Fed should increase interest rates, reduce interest rates, or leave interest rates at their present levels? Offer some logic to support your answer

Evaluating downsizing effectiveness : Evaluating Downsizing Effectiveness

Built-in swimming pool installed in his backyard : Below are three parcels of real property A, B and C. B wants to have a built-in swimming pool installed in his backyard. In order to run the water line directly from the main in the street to the site, the line must run over his neighbor’s property. ..

User Account

All Pages