1 / 62

Unit 2 Lesson 13

Unit 2 Lesson 13. Elasticity. 1) Grab Your Clickers. 2) Grab A Handout 3) And Open Your Notebooks, Please . Agenda. Elasticity of demand: What is it? Indicators of. Partner Activity--Elastic or inelastic? 4 quiz questions Economics Dance (2 New Moves!!!!!)

operez
Download Presentation

Unit 2 Lesson 13

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unit 2 Lesson 13 Elasticity

  2. 1) Grab Your Clickers 2) Grab A Handout 3) And Open Your Notebooks, Please 

  3. Agenda • Elasticity of demand: • What is it? • Indicators of. • Partner Activity--Elastic or inelastic? • 4 quiz questions • Economics Dance (2 New Moves!!!!!) • Get technical with measuring elasticity. • Partner activity--How elastic is it? • Elasticity of supply. • Why gas prices fluctuate so much. • 6 more quiz questions

  4. Why are we MORE sensitive to changes in the prices of certain things?

  5. P P D D Q Q

  6. Elasticity = Sensitivity …to changes in price.

  7. If demand is… • Elastic, buyers are MORE SENSITIVE to P. • Inelastic = LESS sensitive

  8. Elastic • Elastic demand curves are flatter. • Elastic means stretchy. • “Stretch it out flat.” P D Q

  9. Inelastic • Inelastic starts with the letter “I”. • “I” is a vertical line. • Inelastic demand curves are STEEP. • Inelastic “I” Steep Curve I P D Q

  10. 3 questions that determine elasticity: • Does it cost a lot of $$$? • Are substitutes available? • Can the purchase be delayed? • Yes answer usually means demand is elastic.

  11. Chad Seth Danielle Zack Michael Baggott Kyle Kendall Matth Nicole Arron Hillary Michael Brannen Shannon Lacey Haley Virginia Brandon Teacher Desk/ Work Area Erin Morgan Taylor Alex Dillon Join Your Partner

  12. Tim Megan Justin Xavier Andrew Paige Cyndilee Chris Charlee Ryan Stacey Amanda Chelsea Brett Jessica Alison Courtney Kylie Teacher Desk/ Work Area Forrest Lacey Daniel Emily Jordan Avery Kristen Morgan Madison Join Your Partner

  13. Dee Dee Moriah Maggie Jon Jade (Empty) Steven Kara Amber Bethany Drew Kevin Harley JD Courtney Nick Sonia David Melissa Teacher Desk/ Work Area Jordan E Kayla Jordan M Phillip Mandie Lauren Kayla Daylan Catherine Andre Justin Raven Ryne Kelsea Join Your Partner

  14. With Your Partner • You will attempt to determine whether goods have elastic or inelastic demand. • On one sheet of paper (per pair), number from one to seven. • As each item is presented, write down • the item’s name • “elastic” or “inelastic” • Example: 1. Oscar Mayer Ham, elastic • Drawings for candy. • 1 minute to decide each.

  15. The 3 Questions

  16. The 3 Questions

  17. The 3 Questions

  18. The 3 Questions

  19. The 3 Questions

  20. The 3 Questions

  21. The 3 Questions

  22. The 3 Questions

  23. Elastic or Inelastic?? You Decide! (Handout)

  24. Closed-Notes Quiz Don’t worry, it’s easy. 

  25. 1) People are ________ to a change in the price of Breyer’s ice cream. • A) sensitive • B) not sensitive

  26. 2) The demand for Breyer’s ice cream is • A) elastic • B) inelastic

  27. 3) People are ________ to a change in the price of insulin. • A) sensitive • B) not sensitive

  28. 4) The demand for insulin is • A) elastic. • B) inelastic.

  29. Economics Dance New Moves!

  30. Elasticity Defined % change in Q % change in P The bigger the number; the more ELASTIC the good is. An elasticity < 1 means the good is INELASTIC.

  31. Measuring Elasticity: Insulin • Q1 = 12 injections per week • Q2 = 14 injections per week • P1 = $20.00 per injection • P2 = $10.00 per injection • % change Q / % change P • 17% / 50% = 0.33

  32. Measuring Elasticity: Tropicana OJ • Q1 = 1 quart per week • Q2 = 3 quarts per week • P1 = $2.50 per quart • P2 = $2.25 per quart • % change Q / % change P • 200% / 10% = 20

  33. The bigger the number… …the more elastic the demand. …the more sensitive we are to price changes. Insulin: 0.33 Tropicana OJ: 20

  34. Obtain 1 Marker Board for Each Pair & One Marker & A Tiny Piece of Paper Towel

  35. Your Turn • Estimate how elastic or inelastic each good is. • Assign each item an elasticity between 0 and 5. • Remember, inelastic goods have elasticities < 1. • The pair that guesses most accurately gets candy. • Mmmmmmm!

More Related