1. Make a list of 5 items you purchase each month. Make a list of 5 items you purchase each month. Next to each item, put its price and the quantity you purchase.Next to each item, put its price and the quantity you purchase. Which items would you buy more of if the prices were lower?Which items would you buy more of if the prices were lower? Which items would you buy less of if the prices were higher?Which items would you buy less of if the prices were higher? For which items are there substitutes?For which items are there substitutes? Do any of your purchases have a complement?Do any of your purchases have a complement?

2. Of Demand

3. Elasticity of Demand The relationship between the percentage change in quantity demanded and the percentage change in price. The relationship between the percentage change in quantity demanded and the percentage change in price.

4. Elastic Demand % change in Qd > % change in P % change in Qd > % change in P

5. Inelastic Demand % change in Qd < % change in price % change in Qd < % change in price

6. Unit Elastic Demand % change in Qd = % change in P % change in Qd = % change in P

7. Factors that Determine Elasticity Goods May Be More Elastic When: Number of Substitutes Number of Substitutes Luxuries v. Necessities Luxuries v. Necessities % of Income Spent On the Good % of Income Spent On the Good Time Time

8. Complete Ch3 Demand H/O

9. So what? Elasticity of Demand Affects Elasticity of Demand Affects TOTAL REVENUE TOTAL REVENUE ( SOMETHING BUSINESSES CARE VERY MUCH ABOUT )

10. For your scenario, determine if demand is elastic, inelastic or unit-elastic. Also determine change in revenue. In the first week, Javier sold 100 basketballs for $20.00 each. What was his total revenue? #1 The second week,he raised the price of basketballs to $22.00. What was % change? He then sold 75 bbls? % change? What was his total revenue in the second week? Change in revenue? Elasticity? #2 The second week, he lowers price to $18.00. He then sold 130. Total Revenue, week 2? Change in revenue? Elasticity? #3 The second week, he raises price to #22.00. He then sold 95. Total revenue? Change in revenue? Elasticity? #4 The second week, he lowers price to $18.00. He then sells 105. Total revenue? Change in revenue? Elasticity?

11. Homework Section Review p. 84 # 2-4 Section Review p. 84 # 2-4 Read p. 85-Developing Economic Skills: Read p. 85-Developing Economic Skills: “Thinking the Ceteris Paribus Way; or, It’s Never Too Late To Learn Some Latin” “Thinking the Ceteris Paribus Way; or, It’s Never Too Late To Learn Some Latin” Write a short answer to the Question to Answer

12. The Relationship Between Elasticity and Total Revenue