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Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

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(3.A.23) Ed •<br />

as<br />

b<br />

d o d s _ fro.<br />

(P)-P fb t<br />

s 8<br />

(P)<br />

) P f<br />

b (Q) P f a t(P)- P fd • (P)<br />

a<br />

F(P)<br />

1 P 4 1 (P) f(P) P f: 1 (P) fl:(P) ..1 911 0,1)<br />

IL f b (P) Fd I<br />

(P) fs (P) Fd (P)<br />

b • b b<br />

P f:t (p) f:(p) p _ea (p) f(P)<br />

f: (P) F:<br />

(12) fa<br />

(P) Fa (P)<br />

Fa(P)<br />

-1 9a(01 -1<br />

T(Q)1<br />

Finally, using (3.A.11) through (3.A.14), (3.A.23) may be expressed<br />

elf.%<br />

(3.Al24).. Ed ) rd 1)"1 08<br />

d<br />

P(P) F(P)<br />

or as<br />

_ Es . f:(11 _ 'Ed f da (P) -1<br />

•<br />

1<br />

a F: (p) a F: (p)<br />

-1 Vb (Q)<br />

T(Q)<br />

•<br />

s -1 a d p<br />

d 11 d qb<br />

(3.A.25)<br />

s qb1<br />

E<br />

1'bb s qa d qa al<br />

— - — - E — E —<br />

-b DQ c aQaQ T1 •<br />

When expressed as in equation (3.A.25) the elasticity of transport<br />

demand is not as complex as it may at first appear. The first set of<br />

brackets, [ I, enclose the demand and supply elasticities <strong>for</strong> the im-<br />

porting region. Since demand elasticity is negative the two elasticities<br />

are additive. An increase in either elasticity will make the bracketed<br />

63<br />

epao)r i. .<br />

,(0 1

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