I. Bellwork

A. Construct and explain an inelastic demand curve

B. Construct and explain an elastic demand curve

II. Objectives

- Analyze, interpret and construct economic models to determine demand elasticity
- Integrate and evaluate information presented in order to determine demand elasticity from utilization of demand elasticity tests.

**III. Discussion Pages 458-464**

**A Demand Elasticity & Inelasticity – ****Elasticity of Demand**

B**. Calculating Price Elasticity of Demand**

- %Change in Qd / %Change in P
- Midpoint Method:

C Practice

1. On iLearn Worksheet 46.4: Elasticity of Demand Calculation

2. Practice: The price of college tuition increased from $20,000 to $22,000 per year. Enrollment by first year students declined from 500 to 400.

D. Determinants

- Substitutes
- Proportion of Income
- Luxury or necessity
- Addictive
- Time

IV. Classwork:

- Page 103 Vocabulary (7)
- Page 109 2-4 Q&A