Demand and

Elasticities of Demand

Reading, research and reflection

studyguide available via Classroom

Essential

Kognity 2.1 & 2.5
(old textbook Tragakes 2.2, 3.1 & 3.3)

For extra depth

Chris Anderson, The Long Tail (2006) and also this clip of a keynote of his

For extra challenge

Research: Veblen good (beyond IB)
Research: Giffen Good (beyond IB)
Research: the midpoint method of calculating PED (beyond IB)
Research: different PEDs along a straight line linear demand curve (HL topic)

For extra suport

Reading: Jones scanned text

REAL WORLD ISSUE: How do consumers and producers make choices in trying to meet their economic objectives?

How do economists model 'demand'?

1. Demand CLASS OF 2020

What causes the demand curve to shift?

2. Movements and shifts of demand CLASS OF 2020

HIGHER LEVEL

The Income Effect

The Substitute Effect

The Law of Diminishing Returns

5. HL Demand Topics

How sensitive is demand to price? (PED)

3. Price Elasticity of Demand CLASS OF 2022

HIGHER LEVEL

PED, primary commodities and manufactured goods

6. HL PED and Primary Commodities and Manufactured Goods

DEBATE & DISCUSS

Importance of PED for firms and government decision- making

7. PED and Govt and Business decisions

How sensitive is demand to income? (YED)

4. Income Elasticity of Demand CLASS OF 2022

HIGHER LEVEL

Applications of YED

Importance of YED for firms
Importance of YED in explaining changes in the sectoral structure of the economy

8. YED applications HL

Thorstein Veblen

Born: July 30, 1857, Cato, Wisconsin, United States

Died: August 3, 1929, Sand Hill Road, California, United States

Most famous work / contributions

The Theory of the Leisure Class, 1899
The Veblen Curve
Conspicuous consumption

Thorstein Veblen

Further Reading and Research

Journal Articles

Friedman, Milton. “The Marshallian Demand Curve.” Journal of Political Economy, vol. 57, no. 6, 1949, pp. 463–495. JSTOR, www.jstor.org/stable/1826553

Schoenberg, E. H. “The Demand Curve for Cigarettes.” The Journal of Business of the University of Chicago, vol. 6, no. 1, 1933, pp. 15–35. JSTOR, www.jstor.org/stable/2349572

Wilson, Matthew C. “Veblen on Interpreting Veblen.” Journal of Economic Issues, vol. 42, no. 2, 2008, pp. 577–582. JSTOR, www.jstor.org/stable/25511344

Demand and

Elasticities of Demand

Reading, research and reflection

REAL WORLD ISSUE: How do consumers and producers make choices in trying to meet their economic objectives?

How do economists model 'demand'?

What causes the demand curve to shift?

HIGHER LEVEL

The Income Effect

The Substitute Effect

The Law of Diminishing Returns

How sensitive is demand to price? (PED)

HIGHER LEVEL

PED, primary commodities and manufactured goods

DEBATE & DISCUSS

Importance of PED for firms and government decision- making

How sensitive is demand to income? (YED)

HIGHER LEVEL

Applications of YED

Importance of YED for firms

Importance of YED in explaining changes in the sectoral structure of the economy

Thorstein Veblen

Further Reading and Research

Remember to join our Quizlet classroom

2.1, 2.2 and 2.3 Demand,

Supply & Competitive Markets

2.5 and 2.6, PED, YED

and PES