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