Read the attachments and answer the following questions:
- Chapter 4: Problem 6, Advanced Analysis (p. 91: see Chapter 4 part 3 attachment, last page)
- Chapter 6: Problem 6, Advanced Analysis (p. 132 see Chapter 6 part 3 attachment, last page)
NOTE: Numbers and calculations are not self-explanatory. There should be a written introduction (1 paragraph) aside from solving the problems (Graphs, charts and equations can be used to demonstrate the solution). Conclusions must be supported as well. Should be done in a word document or excel spreadsheet.
Thanks in advance.
1. McConnell, C. R., Brue, S. L., & Flynn, S. M. (2012). Economics (19th ed.).Ch 4 & 6. New York, NY: McGraw-Hill.
Chapter 4: Problem 6
Let's begin by recalling what elasticity is. Elasticity measures the responsiveness to price changes. A high elasticity means that suppliers are responsive to price changes (that is, if price drops, a lot of suppliers will stop making the product, and if price increases, a lot of suppliers will start making this product). A low elasticity, on the other hand, means that suppliers are less responsive to price changes.
The global economical environment is examined.