Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Class :y10 Lesson Topic: The Market System Scheme of Work: Income Elasticity

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary.

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Lesson Objectives P&D Planning and Planning and Data ALL (KNOWLEDGE) Define and describe the term Income elasticity MOST (ANALYSIS) Examine and Analyse the concepts of income elasticity SOME (EVALUATION ) Evaluate the pros and cons & Justify your views of income elasticity Higher thinking Skills

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Planning Tools P&D Planning and Planning and Data

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Define and describe the term Income elasticity [Grade E-D] Examine and Analyse the concepts of income elasticity [Grade C-B] Evaluate the pros and cons & Justify your views of income elasticity [Grade A-A*]

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. KeywordDefinition Income elasticity Income inelastic Normal good Inferior good Discrectionary CONNECTIVES

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. CONNECTIVES for Analysis CONNECTIVES for Application CONNECTIVES for Evaluation COMPARING Equally… As with… Like… In the same way… Similarly… Even so… Likewise… CAUSE & EFFECT Consequently…Due to… As a result…Therefore.. Because of…Because… CONCLUDING Firstly…After… Secondly…Before… Overall…I believe… Finally…I think … In conclusion…it depends… To conclude…short term… Meanwhile…Long term… CONTRASTING Although…Except… Moreover…If… However…Yet… Apart from…Unless… Despite…As long as… EMPHASISING Most importantly… Significantly… Notably… Especially… Above all… In particular… Indeed… QUALIFYING Despite…Yet… As long as…Unless… Apart from…If… Moreover…Except… However…Although… ADDING In addition…And… Too…Also… Additionally…As well as… Furthermore… ILLUSTRATING For instance…Such as… In the case of…So… For example… As revealed by… As illustrated by…

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Climb the Ladder A-A* 1.To what extent 2.Do you think 3.Evaluate whether (8-10m) 10+ connectives & key words C-B 1.Explain 2.Compare 3.Analyse (5-8m) 5+ connectives & key words E-D 1.Define 2.Describe 3.Identify (2-4m) 2 + connectives & key words ATD Apply to Apply to demonstrate

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Intro.. You’re income has increased by 500% What items do you; a)Buy more off b)Buy less off c)Buy the same as before (List 2 each)

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Intro.. You’re income has increased by 500% What items do you; INCOME ELASTIC, NORMAL GOODS a)Buy more off – INCOME ELASTIC, NORMAL GOODS INCOME ELASTIC, INFERIOR GOODS b)Buy less off – INCOME ELASTIC, INFERIOR GOODS INCOME INELASTIC c)Buy the same as before – INCOME INELASTIC (List 2 each)

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Income Elasticity of Demand (YED) The responsiveness of demand to a change in INCOME PRICE

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Income Demand Income YED is mostly positively correlated. UNRESPONSIVERESPONSIVE As incomes fall, demand falls.. Vice versa Big change in demand…

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Income Elastic or Inelastic ? Income change (%) Demand change (%) Elastic or inelastic? 10%5% 20%25% 36%35% 50%70% Inelastic Elastic Inelastic Elastic

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. YED = % change in QUANTITY demanded % change in INCOME Demand is ALWAYS on the top + = Normal good -= Inferior good -0.4 = inelastic -1.6 = Elastic

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. When the percentage rise in income is smaller than the percentage ……………. in demand then the good will be ……………………. When the ………………. fall in income is greater than the percentage ……….. in ………… then the good will be ….………… rise income elastic percentage demand fall inelastic

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. List some items… Luxury goods – Discretionary YED > 1 i.e. income elastic Necessities YED < 1 i.e. income inelastic

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Inferior Goods These have a NEGATIVE YED If incomes rise demand will FALL for these goods List some more items… Own Label products A difficult point! Inferior goods can be either income elastic or income inelastic – In a recession demand will rise – so firms producing inferior goods will benefit …… but not all to the same extent ………….

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary.

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. 1.YED = % change in income/ % change in demand 2.YED is always a positive number 3.If YED > 1, then the good is elastic 4.If %change income > % change demand then the good is inelastic 5.For Inferior goods, demand falls as income rises 6.53% of 190 is 99 7.If YED = 2, a 10% rise in income for a normal good causes a 20% fall in demand Quick Quiz – True or False? F F T F T T T

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary.

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. PLENARIES Calculate YED – elastic / inelastic / normal / inferior? When UK income fell during a recession by 5%, the demand for holidays to London rose by 20%. As the average UK income rose from £19,000 to 21,300, demand for digital cameras rose from 180,000 to 193,000 units per month.

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Lesson Objectives P&D Planning and Planning and Data ALL (KNOWLEDGE) Define and describe the term Income elasticity MOST (ANALYSIS) Examine and Analyse the concepts of income elasticity SOME (EVALUATION ) Evaluate the pros and cons & Justify your views of income elasticity Higher thinking Skills

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Climb the Ladder A-A* 1.To what extent 2.Do you think 3.Evaluate whether (8-10m) 10+ connectives & key words C-B 1.Explain 2.Compare 3.Analyse (5-8m) 5+ connectives & key words E-D 1.Define 2.Describe 3.Identify (2-4m) 2 + connectives & key words ATD Apply to Apply to demonstrate

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Pass the Parcel Add as much information you can remember from today’s lesson When the horn blows – pass your sheet to the next table! R Review the Learning Review the Learning

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Neighbours 2 things your neighbour has learnt today 1 question your neighbour wants to ask R Review the Learning Review the Learning

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. Summarise your learning today into a single tweet 140 characters Keep all of the information Tweet STOP R Review the Learning Review the Learning

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. 1 question you need to ask 2 new things you learnt 3 pieces of information R Review the Learning Review the Learning

Economics Section: Income elasticityFurther Reading c.9 Keywords – Income elastic, income inelastic, normal good, inferior good, discretionary. 5 minutes... GO STOP