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ECO10004: Economic Principles- Elasticity- Mongolia's Baby Boom- Government Funded kindergartens- Economics Assignment Help
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3. Calculate the cross-price elasticity of demand between hot dogs and hot dog rolls. Show your calculations and explain your answer in words.
Read the following excerpt and answer question 4.
Need a kindergarten spot in Mongolia? Play the lottery.
Mongolia's baby boom is pushing its schools to breaking point, with desperate parents facing the stark choice of relying on a lottery system or paying for pricey private classes in capital Ulaanbaatar. Spots in coveted government-funded kindergartens, for children aged two to five, are determined by an online ballot. Those who miss out risk being left out of the early years education system altogether -- unless they can afford a fee-paying option. The city's publicly funded kindergartens have space for just half of the 146,000 children between the ages of two and five who live there, according to the municipal education department.
Experts blame the shortage on bad government policy and poor long-term planning. The majority of Mongolia's state-run schools were built during the Soviet era, and relatively few new facilities have been added since the country became democratic in 1990.
Those who do get in face crammed classrooms and overburdened teachers as resources are stretched. The overcrowding also poses health risks, with
germs and the flu being passed around, leaving hospitals struggling to attend to a high number of sick children. Those with a high enough income no longer even bother with the ballot as the private options offer better learning environments.
"There were enough warning signs, but not enough measures taken," Batjargal said. Birth rates soared in the Year of the Golden Pig in 2007, as Mongolians believe that year brings wealth, but little was done in anticipation of the extra demands on resources as those babies grew up. The
government is building schools in the ger, or slum, districts of Ulaanbaatar, but the country's debt problems have restricted spending.
Author Khaliun Bayartsogt, Ulan Bator (AFP)
Source: Seven News, Yahoo web site (https://au.news.yahoo.com/world/a/37266208/need-a-kindergarten-spot-in-mongolia-play-the-lottery/)
4. Given the information in the article use the demand and supply framework to analyse the market for government provided childcare services. In a separate graph analyse the market for private childcare services. In your answer discuss the elasticity of supply in each case and contrast between the two markets. In addition, identify any shortage or surplus in each market.
Economics Assignment Help:
Task: For each pair of items in questions 1 and 2, determine which product is more price elastic (would have a higher price elasticity of demand in absolute value). Explain your answer including identifying the determinant of elasticity. 1. Holiday to Europe and a bag of rice. 2. Weetbix (a brand of cereal) and electricity used in your home. In the following graph the demand for hot dog rolls has shifted outwards because the price of hot dogs has fallen from $2.40 to $1.80 per package. Use the graph to answer question 3.
3. Calculate the cross-price elasticity of demand between hot dogs and hot dog rolls. Show your calculations and explain your answer in words.
Read the following excerpt and answer question 4.
Need a kindergarten spot in Mongolia? Play the lottery.
Mongolia's baby boom is pushing its schools to breaking point, with desperate parents facing the stark choice of relying on a lottery system or paying for pricey private classes in capital Ulaanbaatar. Spots in coveted government-funded kindergartens, for children aged two to five, are determined by an online ballot. Those who miss out risk being left out of the early years education system altogether -- unless they can afford a fee-paying option. The city's publicly funded kindergartens have space for just half of the 146,000 children between the ages of two and five who live there, according to the municipal education department.
Experts blame the shortage on bad government policy and poor long-term planning. The majority of Mongolia's state-run schools were built during the Soviet era, and relatively few new facilities have been added since the country became democratic in 1990.
Those who do get in face crammed classrooms and overburdened teachers as resources are stretched. The overcrowding also poses health risks, with
germs and the flu being passed around, leaving hospitals struggling to attend to a high number of sick children. Those with a high enough income no longer even bother with the ballot as the private options offer better learning environments.
"There were enough warning signs, but not enough measures taken," Batjargal said. Birth rates soared in the Year of the Golden Pig in 2007, as Mongolians believe that year brings wealth, but little was done in anticipation of the extra demands on resources as those babies grew up. The
government is building schools in the ger, or slum, districts of Ulaanbaatar, but the country's debt problems have restricted spending.
Author Khaliun Bayartsogt, Ulan Bator (AFP)
Source: Seven News, Yahoo web site (https://au.news.yahoo.com/world/a/37266208/need-a-kindergarten-spot-in-mongolia-play-the-lottery/)
4. Given the information in the article use the demand and supply framework to analyse the market for government provided childcare services. In a separate graph analyse the market for private childcare services. In your answer discuss the elasticity of supply in each case and contrast between the two markets. In addition, identify any shortage or surplus in each market.