Authentic Economics Applications for a Math Classroom Adam Lavallee Episcopal Academy

Authentic Economics Applications for a Math Classroom How many times can you write the word Economics in 30 seconds? Timer:

Marginal Production Increasing Returns to Scale – Efficiency Decreasing Returns to Scale – “Too Many Cooks in the Kitchen ” WorkersProductionMarginal Product

Dollar Dog Night On Dollar Dog night at Citizens Bank Park, Philadelphia Phillies Phans buy 60,000 hot dogs. On a normal night, hot dogs cost $4 and 15,000 are purchased. This data reveals the Law of Demand: that people will buy more when the price is less. We can find an equation for the law of demand using these two points: (15, 4) and (60, 1)

Dollar Dog Night Find the linear equation of the Demand for hot dogs.

Dollar Dog Night Questions If the Phillies gave hot dogs away for free, how many hot dogs would they give away? How many hot dogs will people buy if the price is $2? At what price will no one buy any hot dogs?

Dollar Dog Night Extensions Give a supply curve and ask students to find the intersection. Create a Revenue function (Price x Quantity) – Maximize Revenue

Create a Business What is your Product? What is the demand for your product? – Sell All Price & Sell None Price Revenue: R = P×Q – Use linear demand – Revenue is a Quadratic Cost – Linear cost

Create a Business Maximize Profit (Profit = Revenue – Cost) – How much should your company produce to maximize profit? – How much should you sell your product for in order to maximize profit. – What will your profits be?

Using Economics in Calculus Derivative = Marginal… everything… Linear Programming & constrained maximization – Maximize Utility constrained by budget

Using Economics in PreCalculus Interest BeyondP=er t

Credit Card Offers

Credit Card Offer Offer 1 0% for 12 months Then 16% Which is better? Under what conditions is each better? Which offer do people most often choose? What happens if you don’t pay back? Offer 2 2% for 15 months Then 16%