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Chapter 6 More Elasticity

Chapter 6 More Elasticity

Author: Matthew Lonn
Description:

Students will examine the elasticity of supply, cross price elasticity and income elasticity of goods in the economy.

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Tutorial

More Elasticity

More Elasticity

Use slides #13-18 to take notes over the three other types of elasticities that you are expected to know. The video at the end will also help reinforce those concepts.

Questions you should be able to answer after the lesson.

1. Definition of elasticity of supply, cross price elasticity and income elasticity.

2. Use elasticity of supply formula to calculate if a good as elastic or inelastic supply.

3. Use cross price elasticity to calculate if two goods are substitutes or complements.

4. Use income elasticity formula to calculate if a good is a normal or an inferior good.

5. Explain what unit elastic, perfectly inelastic and perfectly elastic mean.

Chapter 6 Notes

Reinforcement of elasticity