Suppose an Increase in World Demand for Potash (Used in the Production

question 71

Multiple Choice

Suppose an increase in world demand for potash (used in the production of fertilizer) increases the price from $285 per tonne to $315 per tonne.Annual Canadian production increases from 15 million tonnes to 17 million tonnes.What is the elasticity of supply of Canadian potash?

• A)0.5
• B)0.8
• C)1.0
• D)1.25
• E)2.5

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Definitions:

Out Of Control

A term often used in quality management to describe a process that does not operate within its set control limits, indicating variations that could lead to defects.

Upper Control Limit

The highest value on a control chart that signals when a process is out of control due to variables beyond normal fluctuations.

Sample Means

The average value calculated from a sample of items or individuals, used as an estimate of the population mean.

Basic Statistics

Fundamental principles and techniques used for collecting, analyzing, interpreting, and presenting data.