elasticity 2014

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elasticity 2014

  1. 1. Kleindesk Windows White Board KLEIN 7th 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
  2. 2. Kleindesk Windows White Board KLEIN 5th HOUR Jerry Melissa F Diana N Jesus Andres L Sal C Ismael B Cristabel A Daniel C Nohelialtzel Ryan A Jacob T John G Brian E Jessica M Angel M Jose F Eric V Araceli A Jesus C Dulce C Cezar Miranda Angel M Joel Kellie M Conrado Raul C Vitoria Matt David A Vinny
  3. 3. Kleindesk Windows White Board KLEIN 4th HOUR Gabby Maria O Karen P M Arturo C Alondra Z Nikki G Lisanna Daniel A Sarah O Michael M Michael D Luis R Esteban Hector Yadira L Carlos Jorge Luis Del Toro
  4. 4. Full page Bellringer 1. 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
  5. 5. Today’s topic: Elasticity Responsive to price changes
  6. 6. 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?
  7. 7. 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
  8. 8. 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?
  9. 9. 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
  10. 10. In Reality
  11. 11. 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
  12. 12. Summary

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