Current Events:
The continuing exposure of job creation tales goes to San Diego which used a Barbara Boxer appearance hailing job creation in the area. KUSI-TV reports that they can only find one job created by stimulus dollars in the area. In fact, they expose Boxer’s dishonest representation of NIH grant money for research as “stimulus” funds.
Test #3 Ch.4 Multiple Choice Preliminary Analysis
Chapter 5 Elasticity
Chapter Five (Continued): Powerpoint Lecture
Ch. 5 Outline, summary, and Hand-out questions.
If you join Dabbleboard (Cf. http://www.dabbleboard.com/); you can draw your graphs online instead of on the board. You can share graphs and chat online as well as use Dabbleboard for your Small Group collaborations.
Ch. 5 True/False
Ch. 5 Short Answer
Ch. 5 Objective
Ch. 5 Multiple choice
Gasoline gas prices are based on oil prices. Oil prices are determined by the oil supply and oil demand. Right now, both oil supply and oil demand are almost inelastic. As gasoline gas and oil prices go up, the demand stays almost the same. As the oil supply reaches peak oil or maximum production or extraction, the demand curve becomes vertical, or inelastic. The inelasticity of the oil supply and oil demand set things up for price volatility of both oil and gasoline. The seasonal changes in gas and oil prices we've seen in the last three years is probably due to reaching peak oil. This short screencast shows an inelastic oil supply curve, as well as an inelastic oil demand curve, and what happens to prices as the oil supply or oil demand change.
An explanation of the elasticity of the demand curve in economics.
Effect of elasticity on prices: changes in Supply.
HW: gmsmith@shanahan.org
Chapter 5 Elasticity
1. Answer the first 14 True/false Questions in Chapter 5 posted on Shanawiki; you do not need to email these to me; we will review them in class. Cf. http://shanawiki.wikispaces.com/AP+Economics+Chapter+5+Elasticity
