saplinglearningcom alley College Sapling HW2 chp2 y CollegeE

saplinglearning.com alley College Sapling HW2 (chp2) y College-ECON 1 Section 10969 Microeconomics-Summer18-PRANTE Activities and Due Dates nomist. 6/15/2018 11:59 PM 7.8/20 Grade Pnnt Calculator Periodic Table Question 2 of 16 Sapling Learning Mapd Suppose that you are trying to determine the after effects of hurricane Katrina on the economy of Which assumptions could be made to simplify the study? Note that not all items may be placed Focus on just the crawfish and catfish arming industries in Louisiana. the total net worth of the output roduced by the state prior to the and after the hurrica Determine the effects while holding the Compare the ucture and factors of production cons prices for al g Consider the effects on all of s interstate trade ?Previous ?Give Up & View Solton ?Check Answer ONext Exit about us careers privacy policy terms of use contact os

Solution

Hurricane may destroy an economy in a sense that it damages agricultural production, fish production, output, factory buildings, factors of production, etc. Monetary value of all such losses is economic loss.

The following assumptions are required:

1) Fish industries should be focused: Production should decrease at the time of hurricane, which must reflect in such industry data.

2) Net worth: Difference in net worth before and after gives the true picture of damage. Net worth should low after the hurricane.

3) Price change: Since goods are damaged, supply would be low in the short-run. It increases price, since there should be excess demand.

4) Effects on partners: Such partners may not able to do business with L, because they might be facing high price and low supply.

Only on option is not correct:   

Holding as constant: Damages property is infrastructural loss; and there is loss of life too, which is the loss of labor factor. These can’t be held as constant. If this is done then that study is not effective for hurricane effects.