Elastic Vs. Inelastic

Ms. Perez

Bell ringer

Think of items that that consume a LARGE portion of your budget vs. small

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Price Elasticity of Demand

Measure of change in demand AS A RESULT of changes in prices.

Elastic

Large change in demand with a change in priceLuxuriesMany substitutesLarge % of budget

Who can think of an example of an elastic item?

Inelastic

Little or no change in demand with a change in price

Necessitiesnot many substitutessmall % of budget

Who can think of an example of an inelastic item?

Make a T-Chart on a piece of paper

Label one side elasticLabel the another inelastic Under each item describe why it is

elastic or inelastic

Salt

European Vacation Trip

Pork Chops

New Cars

Insulin

Insulin at one of four drugstores in a shopping center

Food

Fruit (for healthy body)

Bananas

Water

Bottled Water

Bottled water if your water supply is contaminated

While listening to this song think about this…

What does the singer mean about us rescuing the companies?

What is he referring to with bonus pay?

Identify two other things from the song that can relate to our economy and explain how they relate. Please use a bit of detail.

Shutting Down Detriot

http://www.youtube.com/watch?v=_exPnlC3wpY&feature=related

My daddy taught me in this country everyone’s the same

You work hard for your dollar and you never pass the blame

When it don’t go your wayNow I see all these big shots whining

on my evening newsAbout how their losing billions and its

up to me and youTo come running to the rescue

Well, pardon me if I don’t shed a tearThere selling make believe and we don’t

buy that here

Because in the real world their shuttin’ Detroit down

While the boss man takes his bonus paid jets on out of townDCs bailing out them bankers as

the farmers auction groundYeah, while there living up on Wall Street in that New York

City townHere in the real world their

shuttin’ Detroit downHere in the real world their

shuttin’ Detroit down

Well that old mans been working in that plant most all his life

Now his pension plans been cut in half and he cant afford to dieAnd its a crying shame, cuz he

ain’t the one to Blame When I looked down to see his

calloused hands Well let me tell you friend it gets

me fightin’ mad