1 / 5

Win a Free Trip to St. Thomas Island for Two!

Enter now for a chance to win a dream vacation for two to St. Thomas Island. Follow the conditions listed and you could be lounging on sandy beaches in no time!

misha
Download Presentation

Win a Free Trip to St. Thomas Island for Two!

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FREE TRIP TO ST. THOMAS ISLAND FOR TWO!!!! CONDITIONS • None • No eating out until Spring Break • Above and no t.v. until S.B. • Above and working in my room 1hour per week until S.B. • Above and no cell phone until S.B. • Above and must be in by 9:00 every night until S.B. • Above and turn in i-pod or MP3 player until S.B. • Above and no driving until S.B.

  2. WHAT CONDITIONS MUST ONE MEET TO BE CONSIDERED IN THE DEMAND FOR A GOOD OR SERVICE? • MUST HAVE THE DESIRE FOR THE ITEM AND…. • HAVE THE ABILITY TO PAY FOR IT

  3. Inelastic Elastic Elastic Inelastic Inelastic Inelastic ? Inelastic elastic ? elastic Milk MP3 players Plastic surgery Air conditioning Cocaine Coffee College education Gasoline Gas at your favorite station Cigarettes High speed internet ELASTIC OR INELASTIC?

  4. Elasticity of Demand • I f your boss increases your pay from $6 per hour to $7 per hour, how much is your raise as a percent? • Difference between the 2 #’s Divided by the original # x 100 1/6 x100 = 16.6% (not bad) Elasticity = % change in QD % change in price An elasticity greater than 1 = elastic An elasticity less than 1 = inelastic An elasticity equal to 1 = unit elastic

  5. Example A car wash raises its price from $10 to $11. As a result, the number of daily customers falls from 60 to 48. What is this service’s elasticity? % change in QD = 60-48 60 x100 = 20% % change in price = 1/10 x100 = 10% 20/10 = 2 (the service is elastic)

More Related