Elasticity of nonrenewable resources...

Nonrenewable resources are elastic right? Because suppliers of non-renewable resources will alter their supply depending on what they think the future price will be. WHere as, renewable resources like water is nonelastic. Do I have the relationships right? I can’t find it in the books… Thanks.

yes, perfectly elastic for non-renewable and perfectly inelastic for renewable

REMEMBER Wii!!! as in nintendo Wii… as in WI= Water is Inelastic water is renewable

tsttee: You are perfectly correct… and it took me forever to get this straight… … next concept to add on to this is whether it’s economic rent or opportunity cost for a non-renewable resource. Anyone?

economic rent is tied to inelasticity so i say its opportunity cost for non-renew???

Correct!~

what is economic rent? I really need to review my econ, it was my worst area… sigh…

Economic Rent is associaited with renewable resources

economic rent is what the entrepreneur could be getting if he put his engergy in some other project.

ryanwtyler Wrote: ------------------------------------------------------- > economic rent is what the entrepreneur could be > getting if he put his engergy in some other > project. econ rent close to concept pf econ profit ? econ proft = revs - op cost op cost = explicit + implicit econ rent --> inelastic supply, renewable, think lebron james $22M a year and Wii, water op cost ----> professors, elastic supply, nonrenweable. see Volume II, it is all there, it even mentions sports and atheletes making crazy dough b/c of lebron james high MRP - marg rev product!