Discussion Questions From the following quotations, what, if anything, can you conclude about elasticity of demand good weather resulted in record wheat harvest and sent wheat prices tumbling The result has been disastrous for many wheat farmers b) Ridership always went up when bus fares came down, but the increased patronage never was enough to prevent a decrease in overall revenue c) as the price of CD players fell, producers found their revenues soaring d) coffee to me is an essential good ice just gotta have it no matter what the price e) the soaring price of condominiums does little to curb the strong demand in Vancouver 2) Home computers were a leader in sales appeal through much of the 1990s But per capita sales are much lower in Mexico than in Canada, and lower in Newfoundland and Labrador than in Alberta Manufactures are puzzled by the big differences Can you offer an explanation in terms of elasticity 3) what elasticity measure or measures would be useful in answering the following questions will cheaper transport into the central city help to keep downtown shopping centres profitable Will raising the bulk postage rate increase or decrease the revenues for Canada post Are producers of toothpaste and mouthwash in competition with each other What effect will rising gasoline prices have on the sale of cars that use propane 4) interpret the following statements in terms of the relevant elasticity concept as fuel for tractors has become more expensive many farmers have shifted from plowing their fields to non till acreage increased dramatically in the past 20 years Fertilizer makes brace for dismal year as fertilizer price soar When farmers are hurting small towns feel the pain The development of the Hibernia oil field may bring temporary prosperity to Newfoundland and Labrador merchants 5) When the new York city opera faced a growing deficit it cut its ticket prices by 20 percent, hoping to attract more customers At the same time, the new York transit authority raised subway fares to reduce its growing deficit Was one of these two opposite approaches to reducing a deficit necessarily wrong

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Discussion Questions From the following quotations, what, if anything, can you conclude about elasticity of demand? good weather resulted in record wheat harvest and sent

Discussion Questions

From the following quotations, what, if anything, can you conclude about elasticity of demand?

good weather resulted in record wheat harvest and sent wheat prices tumbling. The result has been disastrous for many wheat farmers

b) Ridership always went up when bus fares came down, but the increased patronage never was enough to prevent a decrease in overall revenue

c) as the price of CD players fell, producers found their revenues soaring

d) coffee to me is an essential good-ice just gotta have it no matter what the price

e) the soaring price of condominiums does little to curb the strong demand in Vancouver

2) Home computers were a leader in sales appeal through much of the 1990s. But per capita sales are much lower in Mexico than in Canada, and lower in Newfoundland and Labrador than in Alberta. Manufactures are puzzled by the big differences. Can you offer an explanation in terms of elasticity?

3) what elasticity measure or measures would be useful in answering the following questions?

will cheaper transport into the central city help to keep downtown shopping centres profitable
Will raising the bulk postage rate increase or decrease the revenues for Canada post
Are producers of toothpaste and mouthwash in competition with each other
What effect will rising gasoline prices have on the sale of cars that use propane

4) interpret the following statements in terms of the relevant elasticity concept

as fuel for tractors has become more expensive many farmers have shifted from plowing their fields to non-till acreage increased dramatically in the past 20 years
Fertilizer makes brace for dismal year as fertilizer price soar
When farmers are hurting small towns feel the pain
The development of the Hibernia oil field may bring temporary prosperity to Newfoundland and Labrador merchants

5) When the new York city opera faced a growing deficit it cut its ticket prices by 20 percent, hoping to attract more customers. At the same time, the new York transit authority raised subway fares to reduce its growing deficit. Was one of these two opposite approaches to reducing a deficit necessarily wrong?