1. 1 PowerPoint Exhibit Slides to Accompany Principles of Economics Fred M. Gottheil Chapter 4 ELASTICITY

2. 2 Chapter 4Elasticity © 2001 South-Western EXHIBIT 1ADEMAND RESPONSE TO PRICE CHANGE

3. 3 Chapter 4Elasticity © 2001 South-Western EXHIBIT 1BDEMAND RESPONSE TO PRICE CHANGE

4. 4 Chapter 4Elasticity © 2001 South-Western EXHIBIT 1CDEMAND RESPONSE TO PRICE CHANGE

5. 5 Chapter 4Elasticity © 2001 South-Western EXHIBIT 2MARKET DEMAND FOR COCA-COLA AND SPARK PLUGS

6. 6 Chapter 4Elasticity © 2001 South-Western EXHIBIT 3A PRICE ELASTICITIES OF DEMAND FOR F OOTBALL TICKETS AND MILK

7. 7 Chapter 4Elasticity © 2001 South-Western EXHIBIT 3B PRICE ELASTICITIES OF DEMAND FOR F OOTBALL TICKETS AND MILK

8. 8 Chapter 4Elasticity © 2001 South-Western EXHIBIT 4ELASTICITIES, PRICE, AND REVENUE CHANGES

9. 9 Chapter 4Elasticity © 2001 South-Western EXHIBIT 5PRICE ELASTICITIES OF DEMAND FOR SELECTED GOODS Source: Edward Mansfield, Microeconomics (New York: W. W. Norton, 1997); Robert Hall and Mark Lieberman, Economics (Cincinnati: South- Western College Publishing, 1998); Gary Brester and Michael Wohlgenant, “Estimating Interrelated Demands for Meat Using New Measures for Ground and Table Cut Beef,” American Journal of Agricultural Economics (November 1991); and Heinz Kohler, Intermediate Economics: Theory and Applications (new York: Scott, Foresman, 1986).

10. 10 Chapter 4Elasticity © 2001 South-Western EXHIBIT 6PRICE ELASTICITIES OF DEMAND IN THE SHORT RUN AND LONG RUN Source: H. S. Houthakker and Lester Taylor, Consumer Demand in the United States, 1929–1970 (Cambridge, Mass.: Harvard University Press, 1970); Richard Voith, “The Long-Run Elasticity of Demand for Commuter Rail Transportation,” Journal of Urban Economics (November 1991); and James Griffen and Henry Steele, Energy Economics and Policy (New York: Academic Press, 1980).

11. 11 Chapter 4Elasticity © 2001 South-Western EXHIBIT 7CROSS ELASTICITIES BETWEEN SUBSTITUTES

12. 12 Chapter 4Elasticity © 2001 South-Western EXHIBIT 8CROSS ELASTICITIES OF DEMAND FOR SUBSTITUTE GOODS Source: Edwin Mansfield, Microeconomics (New York: W. W. Norton, 1997); F. Gasmi, J. J. Laffont, and Q. Vuong, “Econometric Analysis of Collusive Behavior in a Soft Drink Market,” Journal of Economics and Management Strategy (Summer 1992); and Gary Brester and Michael Wohlgenant, “Estimating Interrelated Demands for Meats Using New Measures for Ground and Table Cut Beef,” American Journal of Agricultural Economics (November 1991).

13. 13 Chapter 4Elasticity © 2001 South-Western EXHIBIT 9ACROSS ELASTICITIES BETWEEN COMPLEMENTS

14. 14 Chapter 4Elasticity © 2001 South-Western EXHIBIT 9BCROSS ELASTICITIES BETWEEN COMPLEMENTS

15. 15 Chapter 4Elasticity © 2001 South-Western EXHIBIT 10AIR TRAVEL

16. 16 Chapter 4Elasticity © 2001 South-Western EXHIBIT 11INCOME ELASTICITIES OF DEMAND Source: Edwin Mansfield, Microeconomics (New York: W. W. Norton, 1997); and F. Chalemaker, “Rational Addictive Behavior and Cigarette Smoking,” Journal of Political Economy (August 1991).

17. 17 Chapter 4Elasticity © 2001 South-Western EXHIBIT 12COMPARISON OF INCOME ELASTICITIES OF DEMAND FOR FOOD, BY COUNTRY Source: Ching-Fun and James Peale Jr., “Income and Price Elasticities,” in Advances in Econometrics Supplement, ed. Henri Thell (Greenwich, Conn.: JAI Press, 1989); and Y. Wu, E. Li, and S. N. Samuel, “Food Consumption in Urban China: An Empirical Analysis,” Applied Economics (June 1995).

18. 18 Chapter 4Elasticity © 2001 South-Western EXHIBIT 13AELASTICITIES OF SUPPLY

19. 19 Chapter 4Elasticity © 2001 South-Western EXHIBIT 13BELASTICITIES OF SUPPLY

20. 20 Chapter 4Elasticity © 2001 South-Western EXHIBIT 13CELASTICITIES OF SUPPLY

21. 21 Chapter 4Elasticity © 2001 South-Western EXHIBIT 14AWHAT GETS TAXED?

22. 22 Chapter 4Elasticity © 2001 South-Western EXHIBIT 14BWHAT GETS TAXED?