Elasticity Clicker Questions

Document created by Elizabeth Uva Employee on Mar 31, 2015Last modified by Elizabeth Uva Employee on Apr 1, 2015
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(Discussion starter) When gas prices go way up (e.g., last summer, when they were over $4/gallon), do you make any conscious changes in your behavior?

 

A) Yes

B) No

(use as motivation for discussion of perfectly inelastic demand)

 


 

[For the following sets of questions, ask students to think about an open-ended question and then use clickers to collect specific responses]

 

Rank the following goods from the most elastic demand to the most inelastic demand:

 

  • Pork
  • Dijon mustard
  • European vacation
  • Honda Accord
  • Salt

Be able to justify your ranking

 


 

Which good is likely to have the most elastic demand?

 

A) Pork

B) Dijon mustard

C) European vacation

D) Honda Accord

E) Salt

 


Which good is likely to have the most inelastic demand?

 

A) Pork

B) Dijon mustard

C) European vacation

D) Honda Accord

E) Salt

 


 

Rank the following goods from the most elastic supply to the most inelastic supply:

 

A) beachfront property

B) stuffed animals

C) highly-skilled labor

D) Gap jeans

Be able to justify your ranking

 


 

Which good is likely to have the most elastic supply?

 

A) beachfront property

B) stuffed animals

C) highly-skilled labor

D) Gap jeans

 


 

Which good is likely to have the most inelastic supply?

 

A) beachfront property

B) stuffed animals

C) highly-skilled labor

D) Gap jeans

 


 

Assuming demand for candles is fairly elastic, an increase in the cost of wax will lead to:

 

A) A relatively big increase in the price of candles

B) A relatively small increase in the price of candles

C) A relatively big decrease in the price of candles

D) A relatively small decrease in the price of candles

 


 

The Economics Student Association is trying to raise money for a trip to the Federal Reserve by selling candy bars for $2. They arenít making as much money as theyíd like so someone has suggested increasing the price. Someone else suggests lowering the price. What do you think they should do?

 

A) Raise the price

B) Lower the price

C) Do nothing/I have no idea

[can adjust to match more involved context-rich problem (e.g., amusement park pricing) before having students work on problem in groups]

 


 

You have been hired as a consultant to determine what pricing policy would be appropriate in order to increase the total revenue of a major shoe store. Your research suggests that the demand for shoes is highly inelastic. Since your objective is to increase total revenue for the store, you:

 

A) should increase the price of every shoe in the store.

B) should decrease the price of every shoe in the store.

C) should not change the price of anything.

D) can not determine what to do with price until you know whether the salespeople are paid on commission or not

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