Wednesday, September 8, 2011

Extending the Concept of Elasticity

OBJECTIVE 

Students shall be able to

  1. list four major determinants of price elasticity of demand,

  2. explain how a change in each of the determinants of price elasticity would affect the elasticity coefficient,

  3. define price elasticity of supply and explain how the producerís ability to shift resources to alternative uses and time affect price elasticity of supply,

  4. explain cross elasticity of demand and how it is used to determine substitute or complementary products, and

  5. define income elasticity and its relationship to superior and inferior goods.

 

ACTIVITIES

  1. Lecture/Discussion: demand, supply, cross and income elasticities of demand.

  2. Answer some questions.

 

Assignments:

  1. Participate in the discussion of elasticities.

  2. Problems with elasticity.

 

 

ASSESSMENT PROCEDURES

Monitor and adjust as necessary.