AP Economics – 9/27/19

I.  Bellwork

A.  Summarize the article below

• https://www.nytimes.com/2018/06/22/well/diabetes-patients-at-risk-from-rising-insulin-prices.html

B.   Explain why is this happening, what are the options for the consumers and how they are impacted . How does this relate to elasticity/inelasticity.?

II.  Objectives:

• Determine the central ideas and summarize concepts by paraphrasing them in relation to elasticity
• 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

• Elasticity Examples & Another list

B.  Calculating Price Elasticity of Demand

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

Worksheet 46.4: Elasticity of Demand Calculation

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.

C. Total Revenue Method

D. Determinants

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

IV.   Classwork

• P465 Check Your Understanding #2
• P465 1-5 Letter and Answer

AP Micro Economics F2019