In an Attempt to Reduce Poaching of Elephant Ivory Tusks

question 91

Essay

In an attempt to reduce poaching of elephant ivory tusks, officials in Kenya burned illegally gathered ivory. Using your understanding of shifts in supply and demand, will this turn out to be a helpful or hurtful move on the Kenyan government's part?

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Definitions:

Economies of Scale

A cost advantage that arises with increased output of a product, where fixed costs are spread out over more units of production, reducing the cost per unit.

Inventory Carrying Costs

Inventory carrying costs include the total expenses associated with holding and storing unsold goods, such as warehousing, insurance, depreciation, and opportunity costs.

Disintermediation

Elimination of intermediaries, such as distribution centers, in the delivery of products from a producer to a consumer.

Distribution Centers

Facilities that store and distribute a company's inventory to retail locations or directly to customers.