Thursday, February 4 - Friday, February 5, 2010
Extending the Concept of Elasticity
OBJECTIVE
Students shall be able to
list four major determinants of price elasticity of demand,
explain how a change in each of the determinants of price elasticity would affect the elasticity coefficient,
define price elasticity of supply and explain how the producer’s ability to shift resources to alternative uses and time affect price elasticity of supply,
explain cross elasticity of demand and how it is used to determine substitute or complementary products, and
define income elasticity and its relationship to superior and inferior goods.
ACTIVITIES
Lecture/Discussion: demand, supply, cross and income elasticities of demand.
Answer some questions.
Assignments:
Participate in the discussion of elasticities.
Problems with elasticity.
ASSESSMENT PROCEDURES
Monitor and adjust as necessary.