Airplanes

What is the relationship between the price of these goods and services and consumer behavior? (Will consumers continue to buy these regardless of price?) – Prescription eyewear – car battery – dental care – pain medication – long-distance phone calls – cell phone – gasoline

Elasticity will be effected by: – importance of the product – ease of finding a substitute

Group 1: design an airplane made of the following: 1-8 ½ X 11 sheet of paper no name no number no required weight no tools should be used to construct the plane the plane doesn’t necessarily need to fly

Group 2: design an airplane made of the following: 2-8 ½ X 11 sheets of paper name in two colors number a paper clip must be used during construction, you must use glue & scissors the plane has to fly 6 feet

I am the purchasing agent for a major airline. I need to ask you some questions. How many planes can you make in 10 minutes? How many resources are used in the manufacturing of your plane? How many planes can you make for 20 extra credit points?

Elastic or Inelastic Is Group 1’s plane elastic or inelastic, Why? – Elastic Is Group 2’s plane elastic or inelastic, Why? – Inelastic Why is it difficult for Group 2 to respond quickly to changes in price? – cannot adjust production due to the following: skill materials technique involved