1. Price Elasticity of Supply and Demand
OBJECTIVE:
Know the characteristics of elastic demand.
Be able to graph elastic demand.
Know the characteristics of elastic supply.
Be able to graph elastic supply.
Be able to give examples of each.

2. Elastic vs. Inelastic Demand
SUBSTITUTE PRODUCTS.
NOT IMPORTANT ON CONSUMER BUDGET. (NECESSITY)
LOW CONSUMER LOYALTY.
INELASTIC DEMAND
LITTLE TO NO SUBSTITUTES.
A NECESSITY OF LIFE.
HIGH CONSUMER LOYALTY.

3. Inelastic Demand

4. Elastic Demand

5. Controversial Examples

6. Consumer Loyalty on Elastic Demand
What effect does consumer loyalty have on the elasticity of demand?
Examine the handout - Building Thinking Skills.

7. Total Revenue (TR) Formula
TR = Price X Quantity
If Price rises, and TR rises, it is inelastic demanded.
If price falls, and TR falls, it is inelastic demand.
If price rises, and TR falls, it is elastic demand.
If the price falls, and the TR rises, it is elastic demand.
Handout 10-2 Elasticity of Demand and Changes in Total Revenue.

8. Elasticity of Supply How difficult is it to make a good or service?
Does the amount of money offered to the supplier alter the amount of production?
What are some examples?

9. Jiro Dreams of Sushi
Elastic or inelastic supply?

10. Closure
Do the Elasticity of Demand Exercise.