Explain the following from Hull, England a news dispatch
Explain the following from Hull, England a news dispatch: “The fish market here slumped today to what local commentators called a ‘disastrous level’—all because of a shortage of potatoes”.
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The shortage of potatoes either meant they were not available in the required quantities at any price (i.e., that the quantity demanded greatly exceeded the quantity supplied at the market price, for that is how a “shortage” is defined) or that there was an exceptional scarcity of potatoes so that their price was far above normal. In several occasion, restaurants might not get enough potatoes at what they considered profitable prices.
Fish and chips are complements. The sharp increase in the price of potatoes (because of decreased supply) has led to a decreased demand for fish and to a subsequent drop in its price to “a disastrous level.”
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How can we calculate EPS?
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