Wood Dreams makes handcrafted furniture in its retail stores The furniture maker has recently installed a new assembly process, including a new sander and polisher. With this new system, production has increased to 94 pieces of furniture per day from the previous 77 pieces of furniture per day. The number of defective items per day has dropped from 5 to 2 per day. What is the change in productivity of non-defective units for Wood Dreams using the new process

27.78%

Explanation:

Missing word "The production facility operates strictly eight hours per day. 5 people work daily in the plant."

In the earlier scenario, furniture maker manufactured 77 (72 non defective) pieces per 5 laborers working 8 hours day. Thus, the productivity in terms of units per labor hour is:

= 72 / 5*8

= 72 / 40

= 1.8

Similarly, after the process improvement, the productivity in units per labor hour would be:

= 92 / 5*8

= 92 / 40

= 2.3

Thus, change in productivity would be calculated as:

= (2.3 - 1.8)/1.8

= 0.27777778

= 27.78%

The productivity of non defective parts would increase by 27.78%

answer///supply is elastic, and demand is inelastic;