Wednesday October 17

New 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:
Read Chapter 4 "Elasticities" Price Elasticity of Demand pages 46 - 56