EC120 SI Session 3

# EC120 SI Session 3 - Elasticity SI Session #4 Sunday...

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Elasticity SI Session #4 – Sunday October 3 rd 19:00-21:00 It doesn’t have to be that way… Hanson Li SI Sessions for EC120D: Sun 19:00-21:00 1C18 Midterm #1 Review session: Tuesday October 5 th 21:00-23:30 in N1002 (Science Building) Sunday October 10 th SI Workshop cancelled due to Thanksgiving Holiday – Rescheduled to Sunday December 5 th 2010 Midterm in 5 days!!! SI Disclaimer Welcome to Supplemental Instruction! SI consists of a series of peer-student workshops facilitated by a trained SI Leader. This handout was created by a SI Leader and is not designed to be used independently; instead, you are suppose to work on this handout with other students under the guidance of a SI Leader. This handout was designed for SI workshops and is intended for referral only – it is supplemental review and is not meant to be a substitute for attending lectures, reading the textbook, attending labs or tutorials, or regular study habits. This handout is not “official”. Due to the nature of SI and student involvement, this handout may contain errors that may not be apparent unless you attend the SI workshop for which it is intended.

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EC120 www.wlu.ca/si Professor Mesta Elasticity Exercises 1. Let Q D = 40 – 3P. Fill in the table. Graph the demand and spending functions. Note the relationship between elasticity and spending. P 12 10 8 6 4 2 2 4 6 8 10 12 Q Spending 36 30 24 18 12 6 2 4 6 8 10 12 Q P Q D P × Q D % P % Q D η ( elasticity ) 12 Blank Blank Blank 10 12-10 8 10-8 6 8-6 4 6-4 2 4-2 0 2-0 The price of a greyhound round-trip ticket from Kitchener to Toronto drops from \$27.35 to \$23.40. The elasticity of bus travel is 0.25. What will be the % change in the number of bus commuters? 5 days until the mid-term! - 2 -
EC120 www.wlu.ca/si Professor Mesta Cross price elasticity of demand Circle the right answer: Mr. Sub and Subway are substitutes/complements and n xy > / < 0 Income elasticity of demand Canadian’s average income rose from \$40,000 to \$50,000 between 2004 and 2006. During that same period, the number of iPods sold rose from 900,000 to 1,600,000. What type of good are iPods? Price elasticity of supply

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## This note was uploaded on 12/18/2010 for the course ECONOMICS 120 taught by Professor Mesta during the Spring '10 term at Wilfred Laurier University .

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EC120 SI Session 3 - Elasticity SI Session #4 Sunday...

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