elasticity 2014
15
Klein des W i n d o w s White Board KLEIN 7 th HOUR Glorija K Patrick Jess M Tony Noel L P Roman Priscilla Cabrina Marisol A Kristina R Laura F Yamileth Alex O Juan Christian SC Valerie F Myranda B Idalis G Robert Jezabel Gabby Luis F P Jairo
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Transcript of elasticity 2014
Klei
n de
sk
Window
s
White Board
KLEIN 7th HOUR
Glorija KPatrickJess MTony
Noel L PRomanPriscillaCabrina
Marisol AKristina RLaura FYamileth
Alex OJuanChristian SC
Valerie FMyranda BIdalis G
RobertJezabelGabby
Luis F PJairo
Klei
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sk
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White Board
KLEIN 5th HOUR
JerryMelissa FDiana NJesus
Andres LSal CIsmael B
Cristabel ADaniel CNohelialtzelRyan A
Jacob TJohn GBrian E
Jessica MAngel MJose FEric V
Araceli AJesus CDulce C
CezarMirandaAngel MJoel
Kellie MConrado
Raul CVitoriaMatt
David AVinny
Klei
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KLEIN 4th HOUR
GabbyMaria OKaren P M
Arturo CAlondra ZNikki GLisanna
Daniel ASarah O
Michael MMichael DLuis R
EstebanHectorYadira L
CarlosJorgeLuis Del Toro
Full page Bellringer1. Would you buy each of these goods if the price
quadrupled AND WHY?Toothpaste ($2)
New XBOX & PS3 Video Games ($49)Notebook paper ($0.10)Sonoran Hot dog ($2.50)
Art Supplies ($8)New Washing Machine ($400)
2. Get out your notes
Today’s topic: ElasticityResponsive to price changes
Graph this demand curve in your notes
Price Quantity Demanded
$1.25 1$1.00 3$0.75 9
At your tables:What do you notice about this
demand?Do these consumers care about price?What product might fit this demand?
If I really care about price….
• Elastic Demand– Very responsive to
price change– Many substitutes– Big part of budget– Don’t buy very often– Why important to
think about as a firm?
Price/month
Quantity
D-nice apartments
1000
500
100
1000 5000 10,000
Graph this demand curve in your notes
Price Quantity Demanded$1.50 3$1.00 4$0.50 5
At your tables:What do you notice about this demand?Do these consumers care about price?What product might fit this demand?
If I will still buy it• Inelastic Demand– Not responsive to price
change– Few substitutes– Small part of budget– Why does government
often control prices of inelastic goods?
– Illegal drugs?
Price/dose
Quantity
D-dialysis100
1 2 3
200
300
400
500
600
700
In Reality
Are the following goods more elastic or inelastic, short explanation for each• new cars • ground beef • insulin for diabetics • Notebook paper• Gasoline• bicycles • Trip to Costa Rica• Prom tickets• XboxOne
• tattoos • deodorant• Designer Clothing• Baby formula • MP3 Music Downloads• Cell phone for 8th
grader• Cell phone for
salesperson• college textbooks
Summary
