1. ECON WARM UP Describe/define a supply curve in one sentence

2. Elasticity Exercise—Demand Side  Remember---Elasticity is a measure of how sensitive consumers/producers are to price changes  % change in quantity demanded/% change in price  Example: Toothpaste goes from $2 to $3; consumers react by purchasing 9% fewer tubes of toothpaste  Calculation is: 9%/50% =.18  Result is less than 1, which means the good is relatively “Inelastic”  Larger than 1 = Relatively “elastic”

3. Elasticity Exercise  Begin by taking a few moments to come up with 3-5 goods you believe are elastic and why.  At my instruction, break into groups of 3 and share your answers. Within your group, agree on 5 products to share with the rest of the class.  Also within your group, try to come up with 3-5 inelastic goods, and why you believe such goods are inelastic