IB Economics 2018-19: October 2018

Wednesday, October 31, 2018

Wednesday October 31

Review Concepts

Price Elasticity of Supply

Definition
Formula
Possible Changes in Values
Diagrams illustrating the range of values of elasticity
Determinants of price elasticity of Supply

Resources:
Hint to homework question below

Explanation (With Diagram) as to why prices are so volatile for Primary Commodities

Textbook Pages 56 - 60

Power Point - Price Elasticity of Supply

Khan Academy Video - Price Elasticity of Supply

Tutor2U Video - Explaining Price Elasticity of Supply

Mr. Clifford Video - Elasticity Practice
- This video is a good review for elasticity. To get information on each go the time in the video.
- Price Elasticity of Demand 1:48 - 5:40
- Price Elasticity of Supply 5:40 - 7:36
- Cross Elasticity of Demand 7:36 - 11:20
- Income Elasticity of Demand 11:20 - 13:10

Homework: Write an explanation of the "Market for Agricultural Products" Diagram - For tomorrow

Price Elasticity of Supply Handout

Tuesday, October 30, 2018

Tuesday October 30

Review Concepts

Price Elasticity of Supply

Definition
Formula
Possible Changes in Values
Diagrams illustrating the range of values of elasticity
Determinants of price elasticity of Supply

Resources:
Hint to homework question below

Explanation (With Diagram) as to why prices are so volatile for Primary Commodities

Textbook Pages 56 - 60

Power Point - Price Elasticity of Supply

Khan Academy Video - Price Elasticity of Supply

Tutor2U Video - Explaining Price Elasticity of Supply

Homework: Due Thursday November 1

Price Elasticity of Supply Handout

Try to complete Part 1 for Tuesday and Part 2 (The written part) will be due on Wednesday

Monday, October 29, 2018

Monday October 29

Review Concepts

Income Elasticity of Demand (YED)

Definition
Formula
Normal vs Inferior Goods
Student Workpoint 4.6 - Answer Key

New Concepts

Price Elasticity of Supply

Definition
Formula
Possible Changes in Values
Diagrams illustrating the range of values of elasticity
Determinants of price elasticity of Supply

Resources:

Textbook Pages 56 - 60

Power Point - Price Elasticity of Supply

Khan Academy Video - Price Elasticity of Supply

Tutor2U Video - Explaining Price Elasticity of Supply

Mr. Clifford Video - Elasticity Practice
- This video is a good review for elasticity. To get information on each go the time in the video.
- Price Elasticity of Demand 1:48 - 5:40
- Price Elasticity of Supply 5:40 - 7:36
- Cross Elasticity of Demand 7:36 - 11:20
- Income Elasticity of Demand 11:20 - 13:10

Formulas:

PES = % Change in quantity supplied of the product
% Change in price of the product

If PES > 1 Then product has elastic supply
If PES < 1 The product has inelastic supply
If PES = 1 The product has unit elastic supply

Formulas and Possible Ranges of Elasticities

Homework: None

Friday, October 26, 2018

Friday October 26

Review Concepts:

Cross-Elasticity of Demand
Student Workpoint 4.5 - Answer Key

New Concepts:

Income Elasticity of Demand (YED)

Definition
Formula
Normal vs Inferior Goods

Resources:

Power Point - Income Elasticity of Demand

Mr. Clifford Video - Cross and Income Elasticity of Demand

Textbook pages 55-56

Formula:

YED = % Change in Quantity Demanded of a product

% Change in income of the consumer

Homework: Due Monday October 29

Student Workpoint 4.6

Thursday, October 25, 2018

Thursday October 25

New Concepts

Cross Elasticity of Demand (XED)

Definition
Formula
Significance with respect to substitutes and compliments

Resources:

Power Point - Cross Elasticity of Demand

Khan Academy Video - Cross Elasticity of Demand

Mr. Clifford Video - Cross Elasticity of Demand

Textbook Pages 53-54

XED = % Change in Quantity Demanded of product x

% Change in Price of product y

If XED is a positive number than product X and product Y are viable substitutes.nThe higher the number the closer the substitute they are

If XED is a negative number than product X and Y are complimentary goods.nThe higher the negative number the more complimentary they are

If XED is close to zero the products are basically unrelated.nThe closer to zero the products are the more unrelated they are

Homework: Due Friday October 26

Student Workpoint 4.5

Wednesday, October 24, 2018

Wednesday October 24

Formative Quiz - Price Elasticity of Demand

Please complete quiz if you haven't done so already
Homework 4.1 and 4.2 Answers

New Concepts:

Cross Elasticity of Demand (XED)

Definition
Formula
Significance with respect to substitutes and compliments

Resources:

Power Point - Cross Elasticity of Demand

Khan Academy Video - Cross Elasticity of Demand

Mr. Clifford Video - Cross Elasticity of Demand

Textbook Pages 53-54

XED = % Change in Quantity Demanded of product x

% Change in Price of product y

If XED is a positive number than product X and product Y are viable substitutes.nThe higher the number the closer the substitute they are

If XED is a negative number than product X and Y are complimentary goods.nThe higher the negative number the more complimentary they are

If XED is close to zero the products are basically unrelated.nThe closer to zero the products are the more unrelated they are

Homework: Due Friday October 26

Student Workpoint 4.5

Tuesday, October 23, 2018

Tuesday October 23

Review Concepts:

Price Elasticity of Demand (PED)

Definition
Formula
Possible Range of Values
Diagrams illustrating the range of values of elasticity
Determinants of Price Elasticity of Demand

Resources:

Power Point - Elasticity of Demand

Value Ranges for PED (Determined by slope of line)

PED > 1 Elastic
PED < 1 Inelastic

PED = 1 Unit Elastic

Formula for PED = % Change in Quantity Demanded of a product
% Change in Price of the Product

Khan Academy Video - Price Elasticity of Demand

Mr. Clifford Video - Elasticity and Total Revenue

Homework: Due Wednesday October 24

Student Workpoint 4.1 and 4.2

Monday, October 22, 2018

Monday October 22

*Went over formative assessment from Thursday

Reminders

Label everything
Make diagrams legible
Shifts happen first and then price changes as a result of excess supply or demand
Review excess supply and excess demand diagrams

Continue Elasticity: