Applications of price elasticity of demand
Here is a case study with some questions to answer... https://docs.google.com/a/aisbudapest.org/document/d/1gWzLuzLCZVxQRZLXki4KEB2AihLBbOCXW7adPSuGm14/edit?usp=sharing This article Meet the credit crunch winners illustrates a good example of real life YED. And Will price discounting help restaurants survive the crunch? has example of all three concepts of demand elasticities. The last task for the elasticity topic is a case study on the market for air travel: http://e-conomics.weebly.com/uploads/1/9/1/7/19176587/elasticity_air_travel.pdf Also, below is a great 4 1/2 minute summary of PED... an excellent revision tool!
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Income elasticity of demand; its determinants and applications
Obviously, you all did your homework (except for __________?) and have already watched the above video on XED... hand in your graphs now. We will watch the YED graph together and then discuss both concepts and do some tasks, and then move on to PES. Price elasticity of demand and determinants
Look at the following list of products and try to place them in the correct order... most inelastic (least responsive to a price change) on top down to most elastic (most responsive to a price change)... We will discuss all of the concepts you need to be aware of and then do some practice equations and complete some notes. NOTE: I have written some theory notes with some worked examples and some practice questions for all the four types of elasticity here For my short explanation of why elasticity varies along the length of a linear demand curve, you can click this link https://docs.google.com/a/aisb.hu/file/d/0B2DnmWBd6LOCbzJzXzNSY2F2UWM/edit . Also I have posted PAJ Holden's video explanation of all the elasticity topics on this page. You will be given a copy of the following handout which covers the objectives above (as well as some objectives still to come)... but if you lose it then download and print out...
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March 2021
Maree SpraggonTeacher of IB Economics at the American School of Budapest Categories |