This essay focuses on an estimated elasticity of demand. Compose a two-page paper. Address the following subject matter in your paper:  From Chapter Five: Critical Thinking Questions #25
Transatlantic air travel in business class has an estimated elasticity of demand of 0.62, while transatlantic air travel in economy class has an estimated price elasticity of 0.12.

an estimated elasticity of demand

Compose a two-page paper. Address the following subject matter in your paper:  From Chapter Five: Critical Thinking Questions #25
Transatlantic air travel in business class has an estimated elasticity of demand of 0.62, while transatlantic air travel in economy class has an estimated price elasticity of 0.12. Why do you think this is the case? From Chapter 20: Self Check Questions #4, a, b, c, d, and e

4. In Germany it takes three workers to make one television and four workers to make one video camera. In Poland it takes six workers to make one television and 12 workers to make one video camera. a. Who has the absolute advantage in the production of televisions? Who has the absolute advantage in the production of video cameras?

How can you tell?

b. Calculate the opportunity cost of producing one additional television set in Germany and in Poland. (Your calculation may involve fractions, which is fine.) Which country has a comparative advantage in the production of televisions?
c. Calculate the opportunity cost of producing one video camera in Germany and in Poland. Which country has a comparative advantage in the production of video cameras?
d. In this example, is absolute advantage the same as comparative advantage, or not?
e. In what product should Germany specialize? In what product should Poland specialize?  From Chapter Six: Review Question #11, 12, 13 (please treat as one question)

11. What are the main components of measuring GDP with what is demanded?

12. What are the main components of measuring GDP with what is produced?
13. Would you usually expect GDP as measured by what is demanded to be greater than GDP measured by what is supplied, or the reverse?
Problems #28
Last year, a small nation with abundant forests cut down $200 worth of trees. It then turned $100 worth of trees into $150 worth of lumber. It used $100 worth of that lumber to produce $250 worth of bookshelves.

Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nation’s GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves? A couple of a paragraph is right for each of the answers. If you need to go a little over that is fine. You should end up with about two pages of work. If you find you are way under, please go back and recheck some of your answers to see if you need to elaborate a bit more.