2.B.ELASTICITIES

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2.B.ELASTICITIES

We will look at three types of elasticities:
Price elasticity of demand (PED)
Income elasticity of demand (YED) hl only
​Price elasticity of supply (PES)

ib_inquiry_based_learning_planner_-_elasticities.docx
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WHAT: PRICE ELASTICITY OF DEMAND (PED)

Definition: Elasticity is a measure of the responsiveness of the quantity demanded or supplied of a good or service, to changes in any of the factors that determines it.

Substitutes or complements?

WHAT black cabs are to London, yellow taxis are to New York. From the charming checker cabs (pictured) of the 1950s and 60s to the workhorse-like Crown Victorias of the 1990s and 2000s, yellow cabs have been a fixture of the city's streets, and a surefire way to inform viewers in the early scenes of a film that it is set in the Big Apple.

Why the low oil price will not harm sales of electric cars

FILLING the tank is one of the more painful aspects of modern motoring as numbers whirr on the pump at wallet-draining speed. The falling price of oil has at least brought some relief to drivers. Indeed, it is widely assumed that tumbling oil prices will put a dent in the sales of electric cars, as internal combustion engines become increasingly cheap to run.

Jim Manzi makes the case for higher petrol taxes

JIM MANZI does not think that it's a good idea to use Pigovian taxes to reduce emissions or, it seems, to cut oil consumption. I've always found his arguments interesting but wholly unpersuasive.

hOW: tO CONSIDER A RANGE OF GOODS AND SERVICES AND ACCOUNT FOR THEIR PED USING INTERNATIONAL BACCALAUREATE (IB) key terms.

Why: PED AND ITS DETERMINANTS ARE IMPORTANT FOR FIRMS AND GOVERNMENT TO KNOW IN ORDER TO MAKE PRICING (REVENUE) AND TAXATION (GOVERNMENT REVENUE) DECISIONS

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price_elasticity_of_demand_lesson_1_and_2__2_.pdf
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price_elasticity_of_demand_lesson_1_and_2.docx
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PED Oxford Chapter
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Application of PED: Would your demand for  University accommodation on campus to be elastic or inelastic, watch the video and find out?

2013 content, Not on the 2022 syllabus WHY: xed is IMPORTANT FOR FIRMS AND GOVERNMENT TO KNOW IN ORDER TO MAKE PRICING (REVENUE) AND TAXATION (GOVERNMENT REVENUE) DECISIONS

Warfare in the aisles

NEXT time you are hurtling through a supermarket, slow down and look around the packaged-goods battlefield. There are the massed battalions of supermarkets' own labels-no longer just cheap stuff, but increasingly segmented into things like ready meals, "healthy" options or pricey treats.

WHAT: Income ELASTICITY OF DEMAND (yED) 2013 and 2022 content

HOW: BE ABLE TO GIVE FORMULAS, VALUES, DETERMINANTS AND EXAMPLES OF yed

WHY: yED IS IMPORTANT FOR FIRMS KNOW IN ORDER TO MAKE appropriate production DECISIONS at various points in the business cycle.

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Cutting back on the fantasy

ECONOMISTS tend to deride state lotteries as a regressive tax. Poorer people generally spend more than the $514 American annual average on lottery tickets. Participation in a lottery has a minuscule probability of paying off. Yet every one I know who buys lottery tickets claims they do not waste their money.

When is a beer an inferior good?

AMERICANS continue to cut back on spending where they can, and for many that adjusting beer purchases. Not buying less of it, don't be silly-buying cheaper brands. Here's Real Time Economics' Kelly Evans: It's well known that cash-strapped Americans are trading down and giving up nonessential items like restaurant meals, designer clothes and vacations.

Today in classism

EMEK BASKER has written a playfully worded note Get our daily newsletter on the income elasticities of demand for products at Target and Wal-Mart, two big box American retailers, that's sure to enrage friends of the everyman. The context-Wal-Mart, which is widely seen as the blue-collar bulk retailer to Target's white-collar enterprise, has performed well in the current downturn.

That's oil she wrote

I'VE been meaning to draw attention to this analysis from Stuart Staniford (brought to my attention by Kevin Drum). In it, Mr Staniford asks what the world might have looked like had oil demand continued to grow from 2009 on at its 2000-2008 rate of increase: In the counterfactual world, 2009 gross world product would have been 6.4 percent larger than in the actual world.

income-elasticity-of-demand-lesson-1.docx
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WHAT: Price ELASTICITY OF Supply (pEs)

HOW: BE ABLE TO GIVE FORMULAS, VALUES, DETERMINANTS AND EXAMPLES OF pes

WHY: pes IS IMPORTANT FOR FIRMS KNOW IN ORDER TO MAKE APPROPRIATE PRODUCTION DECISIONS.

price_elasticity_of_supply_lesson_1.docx
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PES Oxford Chapter
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STARTER: WOULD A GUN BUY BACK SCHEME PROGRAM BE SUCCESSFUL AS WAY OF DEALING WITH GUN-RELATED HOMICIDES AND INJURIES?

Elasticities ENQUIRY:

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wHY ARE COMMODITY PRICES SO VOLATILE?

hOW DOES IT AFFECT WORKERS WHO PRODUCE COMMODITIES?

Would a government gun buy back scheme work?

are soda taxes really a good idea?

WHY ARE PEPSI AND COCA-COLA'S PRICING STRATEGIES INTERDEPENDENT OF EACH OTHER?

why would some firms welcome a recession?

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How: Develop a poster or a infographic on the Enquiry questions above

applications_of_elasticities_infographic.docx
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1.) Read the article below:
a.) What is a commodity?
b.) What isn't a commodity?
c.) What are the main things that distinguish commodities from non-commodities?

What makes something a commodity?

To mark the publication of "Go Figure", a collection of The Economist's explainers and daily charts, the editors of this blog solicited ideas on Facebook and Twitter. This week we publish five explainers suggested by our readers, who will each receive a copy of the book.

Why commodity prices are surging

THE strong performance of the world's economy is finally filtering into commodity prices. Last year will probably turn out to have been the first year since 2010 in which growth accelerated in each of America, Europe, China and Japan.

Why Africa is becoming less dependent on commodities

FOR DECADES commodities have shaped Africa's economic growth. When prices were high, growth was good; when prices dipped, so did the continent. But that is slowly changing. Despite big commodity-price falls this year-oil is down by 50%-the continent will probably grow by 5% in 2015 (and more in the following years).

Commodity prices

Commodity prices are falling fast on fears that Chinese growth is slowing and that economic recovery elsewhere has stalled. The Economist's all-items index has lost 5% this month and is 12% below its 2012 peak last September. Copper prices have dropped below $7,000 a tonne, a near three-year low.

Making Africa work

"IS ANYONE here actually hoping to make any money, or are you all just trying to minimise your losses?" The question, asked at a dinner in London for investors who specialise in Africa, showed how the mood has changed in the past year.

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Are natural resources a blessing or a curse for developing countries? | Mark Tran

The notion of the resource curse goes back to the 18th century, but the realities are more complex than the term might suggest, writes Mark Tran

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  • Middle School
    • Pride, Unity and Respect Inquiries >
      • November - Native American Heritage Month
    • Assessment in Middle School Humanities
    • Parent support Materials
    • Year 9 Humanities >
      • An Introduction to Year 9 Humanires
      • Year 9 Geography >
        • Is Development a good thing? >
          • How can development be measured?
          • Why are some countries LEDCs?
          • Can the development gap be reduced?
          • What are the issues in MEDCs? Case study Japan
        • How can we ensure responsible consumption and production? >
          • The chocolate trade
          • What is the real cost of fashion?
          • The circular economy
          • Dragon's Den Assessment
        • Extreme Environments >
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          • 1A. WHY DO CIVILISATIONS EXPAND?
          • 1.B THE ROLE OF POLITICAL UNITY AND TRADE
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          • 1E. ASSESSMENT: THE BENEFITS OF INTERCONNECTEDNESS OUTWEIGH THE COSTS TO HUMANITY' EVALUATE THIS STATEMENT IN REFERENCE TO THE PERIOD 250AD-1250AD
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          • Ancient civilizations of the Americas
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          • WHAT MADE THOMAS CLARKSON SO ANGRY?
        • THE TWENTIETH CENTURY RESEARCH PROJECT
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        • significant Inventions
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        • The enhanced Greenhouse effect
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        • What is the problem with plastic?
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        • Topic 2 Migration
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        • 3.3 Workers
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      • 4.0 THE ROLE OF GOVERNMENT IN AN ECONOMY >
        • 4.1 Introduction to Macroeconomics
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        • 4.4.0 FISCAL POLICY
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      • 6.0 INTERNATIONAL ASPECTS >
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      • 1. Introduction to Economics
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        • 2.A. COMPETITIVE MARKETS: DEMAND AND SUPPLY >
          • HL Demand FE 2022
        • 2.B.ELASTICITIES
        • 2.C.GOVERNMENT INTERVENTION >
          • INQUIRY: EVALUATE THE EFFECTIVENESS OF GOVERNMENT INTERVENTION IN ACHIEVING SDG 12: RESPONSIBLE CONSUMPTION AND PRODUCTION
          • HL 2020 Government intervention
        • 2.D.MARKET FAILURE >
          • To What Extent Does the American Health Care Market Represent a Market Failure?
        • HL: RATIONAL PRODUCER BEHAVIOR
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        • Real World Examples: Theory of the Firm
      • 3. Macroeconomics >
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        • 2B. AGGREGATE DEMAND
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        • THE PHILLIPS CURVE (HL)
        • LOW UNEMPLOYMENT
        • EQUITY IN THE DISTRIBUTION OF INCOME
        • ECONOMIC GROWTH
        • OVERVIEW OF DEMAND-SIDE AND SUPPLY-SIDE POLICIES
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      • Exam Papers
      • IA's >
        • IA Marking Exercise
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      • SUMMER LEARNING
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      • 4. International Economics >
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        • 4.C.Economics integration and the terms of trade
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        • Understanding Economic Development
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        • Foreign sources of finance and foreign debt
        • Consequences of economic growth and the balance between markets and intervention
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            • TOK - Genghis
          • King Richard I of England 1173-1199 >
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          • Paper 1: Rights and Protest
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          • Hitler >
            • Emergence and rise to power >
              • HOW MUCH HOPE WAS THERE FOR THE SURVIVAL OF THE WEIMAR REPUBLIC 1919-29?
              • HOW DID THE AIMS AND IDEOLOGY OF THE NAZI PARTY DEVELOP BETWEEN 1919-1923
              • HOW FAR DID THE CONDITIONS OF 1929-33CONTRIBUTE TO THE ESTABLISHMENT OF THE NAZI STATE?
              • WHERE DID SUPPORT FOR NATIONAL SOCIALISM COME FROM?
            • Consolidation and maintenance of power >
              • HOW DID HITLER CONSOLIDATE HIS POWER TO CREATE AN AUTHORITARIAN REGIME?
              • WHAT PART DID PERSONALITY AND PROPAGANDA PLAY IN THE CONSOLIDATION OF POWER?
              • WHAT WERE THE MAIN CHARACTERISTICS OF NATIONAL SOCIALIST GOVERNMENT?
              • WHAT WAS THE NATURE AND EXTENT OF OPPOSITION TO NAZI RULE AND HOW WAS IT DEALT WITH?
              • WHAT WAS THE IMPACT OF FOREIGN POLICY ON HITLER'S CONSOLIDATION AND MAINTENANCE OF POWER?
            • Aims and results of policies
          • Mao >
            • Emergence and Rise to Power
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          • Castro >
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          • Policies In Germany and Cuba >
            • Nazi Policies - Aims and outcomes
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        • Independence movements 1800 - 2000 >
          • Ireland - Europe >
            • 1. The origins rise and rise of independence movements >
              • 1.a. WHAT SOCIAL AND ECONOMIC FACTORS LED TO THE DEVELOPMENT OF AN INDEPENDENCE MOVEMENT?
              • 1.b. EARLY INDEPENDENCE CAMPAIGNING - WOLFE TONE
              • 1.c. SOCIAL DIVISIONS WITHIN IRELAND
              • 1.d. ECONOMIC FACTORS
              • 1.e. WHAT POLITICAL FACTORS LED TO THE DEVELOPMENT OF AN INDEPENDENCE MOVEMENT IN IRELAND?
              • f. What external factors were important in creating an independence movement.
            • 2. Methods used and reasons for success >
              • 2. a WHAT METHODS WERE USED IN THE STRUGGLE FOR INDEPENDENCE 1867 TO 1900? >
                • 2.b.​WHY DID THE INDEPENDENCE MOVEMENT SUCCEED?
                • 2.b. WHAT WERE THE ROLES OF MICHAEL COLLINS AND EAMON DE VALERA IN THE STRUGGLE FOR INDEPENDENCE?
                • 2.c.
            • 3. Challenges faced in the first 10 years after independence; and the responses to those challenges. >
              • 3.a.
              • 3.b.
              • 3.c.
              • 3.d.
              • 3.e.
            • IRISH 'BE AMBITIOUS' RESOURCES
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              • Leadership in India
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