Royal Navy seize inelastic items.

, , ,

A joint operation by the British and Australian navies last month resulted in the largest ever haul of heroin at sea. The drugs weighing 1,032 kilogrammes had an estimated British street value of more than £140 million and were found on a boat 30 miles off the coast of East Africa near Kenya and Tanzania.

This is great news for the authorities but what link does this have with the exams?

HMS EdinburghPrice elasticity of demand (PED) is a core area of pricing theory. PED measures the sensitivity of customer demand to a change in prices and is calculated as

PED  =    % change in demand
% change in price

There is usually an inverse relationship: when price goes up, demand goes down (and vice versa).

Addictive drugs such as the heroin seized by the British and Australian navies however are an inelastic product and in fact are approaching perfect inelasticity. A perfectly inelastic product is a situation where price goes up but the quantity demanded stays the same. In the case of addictive drugs, the drug addicts will still need their “fix” so the quantity demanded by them is largely unaffected by price increases.

The Chief Economist or the Chief Escaper?

It looks like whoever was in charge of recruitment at this Museum didn’t do their job properly. The end result is that the museum is[..]

This is how not to be a chairman.

Here’s a question for you – if you’re the chairman of one of the leading banks in the UK and that bank holds itself out[..]

Momo is certainly a unique lady...

Discrimination in the workplace due to gender, race, religion or sexual preference is not only unethical but is also illegal in most countries. Importantly though[..]
Working from home?
Let’s be honest now – have you ever had a day off work when you really shouldn't have? Have you ever called in sick when[..]
Pass the biscuits...
Does your weight affect the amount of money you earn? That’s an interesting question and researchers from the universities of Strathclyde in Glasgow and Potsdam[..]
#problemswithreturns
It’s common knowledge that high street shops are struggling. A number of household names have gone (or are going!) out of business and one of[..]