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David s

Hurricane Sandy and Supply Elasticities - 0 views

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    This article goes over the supply elasticities of many products seeing shortages after the hurricane in New York and New Jersey. It talks about the inelasticity of the PES for hotel rooms. The determinant for this is time period. More hotel rooms are needed, but they can't be built in a week. The article also talks about the price of gas, and how the demand for gas is almost perfectly inelastic, meaning that gas can be sold for a huge price. The article asks the question, should the scarce resources go to those who can pay the most for them, or those in line first? This goes with the moral question asked in the discussion of the reading.
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