Skip to main content

Home/ ETAP640/ Group items tagged assignment lesson elasticity

Rss Feed Group items tagged

Bill Hooper

Economics Interactive Tutorial: Elasticity - 0 views

  • In each of the following examples, choose whether you would expect demand to be elastic or inelastic. In none of these examples will the demand be as elastic as the demand for gasoline at a particular gas station on a street with many gas stations. Drivers will flock to a gas station with a price a few pennies below its neighbors' prices, and will abandon a gas stations with a price a few pennies higher. Choose "Elastic demand" if you think that buyers will buy somewhat less if the price goes up, or somewhat more if the price goes down. Choose "Inelastic demand" if you think that the buyers will buy about the same amount if the price goes up or down.

    An unconscious bleeding man is brought to a hospital emergency room.

    A patient is given a presciption for a drug to control high blood pressure. The patient's insurance doesn't cover drugs, so the patient must pay out of pocket.

    A hospital in-patient has insurance that will pay all charges. What would the demand be like for nurse-administered propoxyphene (Darvon), a pain-reliever?

    A senior signs up with a managed care plan to get the Medicare drug benefit. Even though the senior is locked in for a year, the plan can, at any time, change which drugs it will pay for, based on the plan's judgement about a drug's effectiveness and price relative to other drugs that do about the same thing. For members of that plan, what might the demand for the Darvon be like? Darvon's cheapest alternative might be acetomenophen (Tylenol) in this case.

    A family has a high-deductible health insurance policy. The effect is that the family pays for primary care office visits out of pocket. Now, one of their children has an earache. What would their demand be like for an office visit to get this checked out?

    In general, if the decision-maker has an incentive to spend less on some product
    if there is an adequate substitute for that product, then demand is more ...

    • Bill Hooper
      This area is a perfect tool for the student to self-assess whether or not he/she grasps the concept of elasticty. The student reponds to each scenario and is provided with an immediate solution to confirm their answer.
  • Health Savings Accounts -- The Best Way to Make Demand More Elastic?

    • Bill Hooper
      This section would be the perfect way to take the concept of elasticity and apply it to a current event. It could also be an excellent prereading for a discussion or blog.
  • Elasticity

    • Bill Hooper
      This initial section provides a nice summary of elasticity and would be useful to assign as a reading to provide background at the beginning of the module.
  • ...1 more annotation...
    • Bill Hooper
      Terrific website to use as part of a short unit on elasticity. It provides all the basic background information, provides a self-assessment, and applies it to a current event. Students should have no trouble getting some good information out of this site.
    This is a very cool interative activity for students to use in their learning about the concept of elasticity.
1 - 1 of 1
Showing 20 items per page