r u an economic genius (at least someone better than me)

boberz · Post by **boberz** » Tue Oct 16, 2007 11:16 am

I need an economics genius please.

Price Elasticity of Supply.

Mona Lisa perfectly inelastic

Carrots Fairly inelastic

xxxxxxxx perfect unity (could somebody please suggest an example)

Beef fairly elastic

Certain types of wheat perfectly elastic

XXXXXXXXXXX NEGATIVE ELASTICITY OF SUPPLY (NEED EXAMPLE PLEASE)

i would dearly like to have an example both of an individual (firms) supply curve that has negative elasticity and possibly if it exists (even theoretically) a market supply curve that has negative elasticity

I say this because there are clearly examples of elasticity positive demmand curves and my mind will not let me think there cannot be a supply curve as much. I am currently studying AS economics if anybody wishes to understand why I am asking.

static_ice · Post by **static_ice** » Tue Oct 16, 2007 11:22 am

I knew some of this stuff last year when I had Consumer Economics but now its all out of my head

The Weird One · Post by **The Weird One** » Tue Oct 16, 2007 11:47 am

we should have just ONE hmwk help thread and see if the mods will sticky it for us.

boberz · Post by **boberz** » Tue Oct 16, 2007 1:13 pm

any improvements on that and thanks guys, but cant see the need for a sticky

autoload · Post by **autoload** » Tue Oct 16, 2007 1:14 pm

6 more posts til you get 777.

boberz · Post by **boberz** » Tue Oct 16, 2007 1:19 pm

why is that important??? lol and u arent an economic genius are you

boberz · Post by **boberz** » Tue Oct 16, 2007 3:33 pm

jako · Post by **jako** » Tue Oct 16, 2007 3:34 pm

dont understand ur first post.

boberz · Post by **boberz** » Tue Oct 16, 2007 3:36 pm

then, no offence intended you probably cannot answer the question.

Or do you mean you are the equivilent of John Keynes or Adam Smith at economics and i have totally missed the mark

cena-rules · Post by **cena-rules** » Tue Oct 16, 2007 3:38 pm

if you explain what you mean by the elasticity then I may be able to help

jako · Post by **jako** » Tue Oct 16, 2007 3:45 pm

boberz wrote:then, no offence intended you probably cannot answer the question.

Or do you mean you are the equivilent of John Keynes or Adam Smith at economics and i have totally missed the mark

sorry i cant. im in accounting, not economics.

but if u ever need help balancing ur cheque book, im here.

boberz · Post by **boberz** » Tue Oct 16, 2007 3:49 pm

elasticity of supply is basically the responsiveness of supply to a change in price,

a negative response would effectively be when the price falls then the quantity supplied will increase (or vice versa) but im not a teacher and i have probably not explained it well

Harijan · Post by **Harijan** » Tue Oct 16, 2007 6:24 pm

negative elastisity is when the supply and the price move in the same direction. When supply goes down, price goes down.

Give me a bit to come up with a good example.

Harijan · Post by **Harijan** » Tue Oct 16, 2007 6:45 pm

It is important to note that regardless of elasticity, prices can still change, there just is not a correlation between supply and price changes.

So total inelasticity (n=0) is when prices do not change in relation to supply.
Example: Salt (n = 0.1)

A price inelastic product (0<n<1) is when there is a low correlation between price and supply.
Example: Coffee (n = 0.25)

A price elastic product (0>n>1) is when there is a high correlation between price and supply

example: movies (n = 0.9)

A totally elastic product (n>1) is when for every unit change of supply there is the same unit change of price.

example: fresh tomatoes (n = 4.6)

http://www.mackinac.org/article.aspx?ID=1247

Harijan · Post by **Harijan** » Tue Oct 16, 2007 6:46 pm

Normally I charge $200/hour, I will give you the CC discount.

The Weird One · Post by **The Weird One** » Tue Oct 16, 2007 7:05 pm

boberz wrote:any improvements on that and thanks guys, but cant see the need for a sticky

no, i meant instead of everyone making their own seperate threads for hmwk help, there should be one thread that everyone uses.

boberz · Post by **boberz** » Wed Oct 17, 2007 10:12 am

thanx guys but suuccessfully thught it out and does anybody agree that share CAN not must have negative elasticity of supply

More shares will be on the market (i.e people selling them will rise) if price goes down.

And negative elasticity means that when price goes down supply will rise so the supply curve (this can be a straight line) will be downward sloping. As i say i understand it just dont teach it well.

cena-rules · Post by **cena-rules** » Wed Oct 17, 2007 10:14 am

with shares the amount of shares is guarenteed to go up.

People will buy shares therefore raising the amount or they will be sold which means there are more to buy on the market

boberz · Post by **boberz** » Wed Oct 17, 2007 10:16 am

Harijan wrote:negative elastisity is when the supply and the price move in the same direction. When supply goes down, price goes down.

Give me a bit to come up with a good example.

me thinks this is positive elasticity of supply. But i cant be bovered to plough numbers in.

And harijan thanks for your post very good examples (better than mine) but i dont suppose you have an example of negative EofS better than mine as well or perhaps an example for a whole market

autoload · Post by **autoload** » Wed Oct 17, 2007 12:49 pm

Hey, you are right at 777 posts now!

boberz · Post by **boberz** » Wed Oct 17, 2007 1:22 pm

cena-rules wrote:with shares the amount of shares is guarenteed to go up.

People will buy shares therefore raising the amount or they will be sold which means there are more to buy on the market

my point still stands though???