Elasticity. According to MET (1990), single-family residences have price elasticities of -0.16 in winter and -0.36 in summer. Using data from cities in the western United States, Xxxxxx and Olmstead (2007) estimated an overall elasticity of -0.36. Within this num- ber, they estimate demand elasticity near zero for indoor water use; for outdoor water use, elasticity varies from -0.48 for rich peo- ple with large lots and -0.87 for poor people with small lots. One reason for low elasticity is that wa- ter is so cheap. From Table 2.3, we see MET’s 2007 wholesale cost for Tier 1 wa- ter is $478/AF; this works out to less than $1.50/1,000 gallons. If retail prices are three times this number, $4.50/1,000 gallons is still cheap. Keep in mind that these prices are much higher than they were 20 years ago: Figure 2.4 shows that MET’s prices (in 2004 dollars) rose sharply after the 1987– 1991 drought. Even so, water managers do not raise prices in drought—they ask people to use less water (Xxxxxx, 1990).
Elasticity the extent to which a customer may overuse their share of a cluster in case of higher-than-average computing needs (peaks). Group: a research group from ETH or from a collaborating institution using the cluster for a specific project. Guest: a person who has been granted free access to the cluster, subject to some limitations. Project: an official research project involving one or more groups using the cluster to store and process data. Project leader (PL): the person responsible for organizing a research project and leading it scientifically. Resource: physical / abstract cluster component, such as processor core / CPU time, RAM / virtual memory, storage / file system, network / bandwidth, etc. Secure tenant: an ensemble of resources (access point, compute nodes, storage, network) in Leonhard Med with its own security policies. A shared secure tenant allows the pooling of compute resources between different projects with the same security requirements. An isolated secure tenant is dedicated to a single project. Share: the resources purchased by a customer in one of the shared clusters covered by this SLA.
Elasticity. The influences of the techno-economic parameters on the resulting LC of DME can be compared dimensionlessly using elasticity. The absolute elasticity (||) for each parameter (p) regarding the levelized cost (LC) is calculated numerically using the following equation: () = |
Elasticity. Let S be the current price of the stock and let V be the value of an option on that stock. Assume that the stock price increases by dS , resulting in a change of dV in the value of the option. The percentage change in the value of the stock is equal to 100(dS / S )% and the percentage change in the value of the option is 100(dV / V ) % . The elasticity of the option, denoted by Ω , is the ratio of the percentage change in the value of the option as a function to the percentage change in the value of the underlying stock. In other words: • Ω = 100 dV / V = dV / V = dV S = S Δ 100 dS / S dS / S dS V V This gives us the following formula for elasticity: • Ω = S Δ Several important properties of elasticity are stated below. Properties of Elasticity • • • • • Ωcall ≥ 1 and Ω put ≤ 0 The volatility of an option and the volatility of the underlying asset are related by the expression σoption = σstock∣Ω∣ . The risk premium for a stock and an option are related by the expression γ − r = Ω(α − r) . The elasticity of a portfolio is the price-weighted average of the elasticity of its instruments. Ω = S Δ Example 4.15 Assume the Black-Scholes framework applies. The current price of a stock is 210. The stock pays dividends continuously at a rate of 2% and has a volatility of 36%. The risk-free rate of interest is 6%. You are also given that Med [S 2] = 234.51 . Consider a of a 2-year, 240-strike European call on the stock.
