AP Economics – 10/01/18
I. Bellwork
A. Summarize the article below
B. Explain what the options are for the consumers and how they are impacted impacted
II. Objectives:
- Discuss how the Substitution Effect and Income Effect impact demand
- Construct formulas to determine demand elasticity
- Integrate and evaluate information presented in order to determine demand elasticity or inelasticity.
III. Discussion Pages 458-464
A. Substitution and Income Effect on the Demand Curve Slope – Change in Qd
- Practice on iLearn
B. Demand Elasticity & Inelasticity – Elasticity of Demand
C. Calculating Price Elasticity of Demand
- %Change in Qd / %Change in P
- Midpoint Method
- Practice on iLearn
IV. Classwork/Homework
- P465 Check Your Understanding #2
- P465 1-5 Letter and Answer
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