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Suppose a Decrease in World Demand for Potash (Used in the Production

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Suppose a decrease in world demand for potash (used in the production of fertilizer) decreases the price from $400 per tonne to $240 per tonne.Annual Canadian production decreases from 12 million tonnes to 8 million tonnes.What is the elasticity of supply of Canadian potash?


Definitions:

Negative Reinforcement

The process of strengthening a behavior by removing or avoiding a negative outcome or unpleasant stimulus as a result of the behavior.

Contingent Avoidance

A type of learning where a subject learns to perform a behavior to prevent the occurrence of an aversive stimulus.

Active Avoidance

A learning process in which an organism learns to perform a behavior to prevent or avoid an unpleasant stimulus.

Negative Reinforcement

The strengthening of a behavior by removing or avoiding a negative outcome or aversive stimulus when the behavior is performed.

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