banner_small
Economics HOME School Loop SSFHS Homework Contact

Click below on a Chapter and Section

Chapter 1 Section 1

Chapter 1 Section 3

Chapter 2 Section 1

Chapter 2 Section 2

Chapter 2 Section 3

Chapter 2 Section 4

Chapter 3 Section 1

Chapter 3 Section 2

Chapter 3 Section 3

Chapter 3 Section 4

Chapter 4 Section 1

Chapter 4 Section 2

Chapter 4 Section 3

Chapter 5 Section 1

Chapter 5 Section 2

Chapter 5 Section 3

Chapter 6 Section 1

Chapter 6 Section 2

Chapter 6 Section 3

Chapter 7 Section 1

Chapter 7 Section 2

Chapter 7 Section 3

Chapter 7 Section 4

Chapter 8 Section 1

Chapter 8 Section 2

Chapter 8 Section 3

Chapter 8 Section 4

Chapter 9 Section 1

Chapter 9 Section 2

Chapter 9 Section 3

Chapter 10 Section 1

Chapter 10 Section 2

Chapter 10 Section 3

Chapter 11 Section 1

Chapter 11 Section 2

Chapter 11 Section 3

Chapter 12 Section 1

Chapter 12 Section 2

Chapter 12 Section 3

Chapter 13 Section 1

Chapter 13 Section 2

Chapter 13 Section 3

Chapter 14 Section 1

Chapter 14 Section 2

Chapter 14 Section 3

Chapter 14 Section 4

Chapter 15 Section 1

Chapter 15 Section 2

Chapter 15 Section 3

Chapter 16 Section 1

Chapter 16 Section 2

Chapter 16 Section 3

Chapter 16 Section 4

Check your grade on School Loop

Chapter 4 Section 3

 

RESOURCES

Video Lesson

 

Section HW

Read pages 90-96 and complete questions 1-4 p. 96.

 

Chapter Power Point

Chapter 4 Power Point Presentation

 

Self-Test

Chapter 4 Self-Test

 

California State Standard(s) Covered

12.2.1

*Click HERE for description of CA Standard covered

 

Stock Market Simulation

Click HERE for game page

 

Advanced Topic Presentation

Click HERE for ATP info

 

Final Exam Prep
(available two weeks before exam)

Click HERE for Final Exam Study Guide

     Economists use the term elasticity of demand to describe the way people respond to price changes. If you keep buying despite a price increase, your demand is inelastic. If you buy less after a small price increase your demand is elastic. Demand tends to be inelastic for goods that have few substitutes, like medicines, or for goods that are considered essential, like milk.

     To compute elasticity of demand, take the percentage change in the demand of a good and divide this number by the percentage change in the price of the good. Say that if the price of pizza rises from $1.00 to $1.50, demand falls from 4 to 3 slices per day. The change in demand is a 25 percent decrease. The change in price is a 50 percent increase. The elasticity of demand is 25 percent divided by 50 percent, or .5. Since this number is less than 1, the demand is inelastic—customers continue to buy even if the price increases. A demand that is more than 1 is elastic.

     Elasticity is an important tool for business owners. It helps them to determine how a change in prices will affect their business’s total revenue, or the amount of money the company receives by selling its goods. If a business faces elastic demand, then raising prices will result in a sharp drop in demand, decreasing total revenue. However, when a good has an inelastic demand, a business might be able to increase its total revenue by increasing the price.

 

Economics Home   l  School Loop    l   SSFHS  l   Contact  

Copyright Aaron Boyd. All Rights Reserved.