Economics – 10/04/19

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

• Elasticity Examples & Another list

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.

C. Total Revenue Method

D. Determinants

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

IV.  Classwork:

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

Economics F2019