Introduction/Possible Activities:
Elasticity might remind you of a rubber band. While in Economics, Elasticity is a little different, you can use the picture of a rubber band to help you understand. If a good is ELASTIC it means that consumers or producers are more likely to change their habits based on the price of the good. If you pull up to a gas station and notice that the gasoline is on sale by 50 cents per gallon, do you buy more gasoline than you would have otherwise? Probably not because your tank can only hold so much. People are less likely to change their habits given even a sizable change in price (inelastic).If you notice that the local fast food chain puts cheeseburgers on sale for 49 cents for one day, people line up around the block to get as many cheeseburgers as they can! This good is said to be more elastic because given a change in price, people tend to consume many more goods than had they not been on sale. How do we calculate elasticity?

Objectives
E. Students should be able to demonstrate understanding of elasticity by:
1. Defining elasticity of demand.
2. calculating elasticity using:
a. total revenue method
b. coefficient method
3. Graphing elastic and inelastic supply and demand curves.

Learning Activities:
1. Watch the videos below and take notes.






2. Complete the following worksheet after having watched the videos. Go back an re-watch the videos if you run into trouble on the following problem sets:











Assessment:


Remediation Checklist:
  • Re-read text.