ERIC Number: ED308133
Record Type: Non-Journal
Publication Date: 1988-Mar-10
Reference Count: N/A
Teaching Price, Income, and Cross Elasticity of Demand: Another Approach.
Zahka, William J.
One of the most important, yet difficult concepts to teach in an undergraduate course in intermediate microeconomics is the all-embracing concept of elasticity of demand. This paper details a four part teaching approach developed to make this most important aspect of microeconomic theory more understandable. Part 1 develops the approach for teaching price elasticity of demand, including a schema to be displayed in class, and graphs and essential characteristics for the following cases: relatively elastic demand curve, relatively inelastic demand curve, unitary elastic demand, perfectly elastic demand curve, and perfectly inelastic demand curve. Part 2 develops the approach for teaching income elasticity of demand. Part 3 develops the approach taken to teach cross elasticity of demand. Part 4 reviews the formulas and their relationships and presents the conclusions of the paper. Because the merit of microeconomics is resurfacing as an approach to the solution of macroeconomic problems, these elasticity of demand concepts assume even greater importance for teaching elasticity in an intermediate microeconomics course. With the approach outlined in this paper, students will be well-equipped to use these analytical tools. (GEA)
Publication Type: Guides - Classroom - Teacher; Reports - Descriptive; Speeches/Meeting Papers
Education Level: N/A
Audience: Teachers; Practitioners
Authoring Institution: N/A