Elasticity — How Much Are You Willing to Pay?

Overview:

In this lesson, we look at the concept of price elasticity by introducing students to complementary and substitute goods. Using the article “McCormick’s Alan D. Wilson on Pricing, Innovation and the ‘Romance of Spice,’” students will generate lists of products with multiple substitutes and products with no substitute. Based on these examples, students will think about how the presence of substitute goods affects supply and demand decisions. Finally, building on student work, the teacher will introduce the terms inelastic and elastic to describe different types of supply and demand curves.

NBEA Standard(s):
  • Economics, I. Allocation of Resources
  • Economics, IV. Markets and Prices

Lesson Plan Details:

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