The correct answer in this particular situation would be it increased.
Answer:
a. Calculate the price elasticity of supply for Aji's Chocolate Factory in February
b. Calculate the price elasticity of supply for Aji's Chocolate Factory in March
c. If Aji's Factory is nearly at full capacity of production in March, what will happen to Aji's Factory price elasticity of supply in April?
- If the company is producing at full capacity, then its price elasticity of supply will be perfectly inelastic even if the price increases. This is because any increase in price will not affect the quantity supplied because the company cannot increase it even if they wanted to.
Explanation:
price elasticity of supply = % change in quantity supplied / % change in price
It measures the proportional change in the quantity supplied that producers will make given a 1% change in the price of their product.
PES February = [(110 - 80)/80] / [(2.5 - 2)/2] = 0.375 / 0.25 = 1.5
PES March = [(140 - 110)/110] / [(3 - 2.5)/2.5] = 0.273 / 0.2 = 1.36
Answer:
D. the price of onions
Explanation:
The price of onions leads to a change in the quantity demanded of onions. If price increase, the quantity demanded of onions fall all things being equal. If price falls, the quantity demanded of onions increases all things being equal.
The other factors affect the demand for onions.
I hope my answer helps you
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Answer:
4. to gain access to low-cost inputs of production
Explanation:
The reason for Exxon Mobil to opt for this strategic alliance, Whereas the remaining ones are not relevant in this context may be because it can help to gain access to low-cost inputs of production.
