Coach Rustay's Blog

AP Microeconomics-Week of Sept. 14-Sept. 18

GEORGIA ACADEMIC STANDARDS

SSEMI3-Students will explain how markets, prices and competition influence economic behavior.

AP STANDARDS

2.A-Supply and Demand
2.B-Theory of consumer choice
2.C-Production and costs

Monday 09/14
The majority of the content covered on Monday revolved around the ideas of price elasticity of demand which gauges the responsiveness consumers have to changes in price. We looked at several models to show how changes in price affect the way consumers purchase goods. The more elastic the demand, the more responsive the consumer is to a change in price. The more inelastic the demand, the smaller the response from consumers. We also examined the midpoint or arc formula for calculating the coefficient of elasticity in certain price ranges. Pages 340-347 and activity 17 were assigned as homework.

Tuesday 09/15
We took a few minutes to discuss the supply/demand/marginal/total utility quiz from last Thursday. We looked at the total revenue test of elasticity today using the rubber band and the paper clip. Handouts 74-75 and 82-83 from Dr. Stone were given as homework.

Wednesday 09/16
Who bears the burden of a tax? That was the essential question we were trying to answer in class today. We discovered that this is contingent upon the relative elasticity of the demand curve. The supply curve shifts to the left while demand remains constant when a per-unit excise tax is applied to the production of a product. This makes the cost of production rise and consequently the price to increase as well. Who pays for the bigger portion of the tax depends upon the elasticity of the demand curve. The more elastic the curve, the more the producer pays, the more inelastic, the more the consumer pays. Pages 84-85 from Dr. Stone on cross-price and income elasticity were given for everyone to look over. Also, pages 90-91 and 95 from Dr. Stone on tax incidence were handed out to discuss further on Friday.

Thursday 09/17
Work day in class. Activities 19 and 21 were assigned.

Friday 09/18
Discussion on p. 95 and activities 19 & 21 from Wednesday and Thursday, respectively. We are set to discuss price floors and price ceilings. This is somewhat confusing at first because the floors and ceiling are not necessarily in the positions we expect but hopefully those ideas will come together after our discussion.  Activity 22 will be the homework due Monday. We will be reviewing for the test on Monday and the test will be held on Tuesday and Wednesday of next week.

AP Microeconomics-Week of Sept. 8-11

GEORGIA ACADEMIC STANDARDS

SSEMI2-Students will explain how the Law of Demand, the Law of Supply, prices and profits determine production and distribution.

AP STANDARDS

1.F-Marginal analysis
2.A-Supply and demand
2.B-Theory of consumer choice

Tuesday, Sept. 8
Discussion of activity 12 and p. 60 from last Friday. Began discussing market equilibrium and looking at a number of different scenarios with movements of supply and/or demand curves. Handout pages 26-28 were assigned for homework.

Wednesday, Sept. 9
Discussion of pages 26-28 from Tuesday. Further investigated the ideas of market surplus and market shortage. How does an increase or decrease in equilibrium price and/or quantity affect either of these areas? Talked about the pressures placed on the product market to get prices back to equilibrium from either a shortage or surplus situation. Activity 14 was assigned for homework. Handout pages 33-34 and 42-43 were available as additional practice in preparation for Thursday's quiz.

Thursday, Sept. 10
Quiz over supply/demand/equilibrium/total and marginal utility. Handout pages 52-53 were given as homework for Friday.

Friday, Sept. 11
Consumer/producer surplus notes & discussion. Check & go over activity 14. Activity 16 for homework.

Week of August 31-September 4, 2009

GEORGIA ACADEMIC STANDARDS

SSEMI2-Students will explain how the Law of Demand, the Law of Supply, prices and profits determine production and distribution.
SSEMI3-Students will explain how markets, prices and competition influence economic behavior.

AP STANDARDS

2.A-Supply and demand
2.B-Theory of consumer choice

Monday 08/31

On Monday, we spent some time going over the free response questions from last Thursday's exam to help everyone understand the correct answers. We also began discussing demand. With demand, we have to make sure to understand the difference in quantity demanded and demand. Quantity demanded is just a point on a demand curve, demand is the curve. We also discussed the 5 determinants of demand.

Tuesday 09/01

On Tuesday, we began class by creating our own demand schedules complete with prices and quantities demanded. We took that information and plotted demand curves. This activity was used to put into practice what we discussed on Monday. We spent time going over activity 9 on demand. Activity 10 was assigned for homework.

Wednesday 09/02

We will discuss the remainder of activity 9 and activity 10 before conducting an experiment in the market for wheat. The market for wheat always makes for an interesting day in class.

Thursday 09/03

On Thursday, we will discuss the idea of utility in both a marginal and total sense. Someone will have the opportunity to display the law of diminishing marginal utility in class. Activity 11 and reading (pp. 50-53) from the textbook will be assigned for homework.

Friday 09/04

We will discuss activity 11 and then begin our discussion on supply. Everyone will have the opportunity to earn bonus points in class today by participating in a supply experiment. The ideas of supply vary from the ideas of demand. Instead of a downward-sloping curve, we will have an upward-sloping one. The amount offered will vary directly with price. The higher the price, the greater the amount offered in the marketplace.

We will move into equilibrium next week and talk about how prices and quantities in the marketplace change based on the amount of shift in the demand &/or supply curve(s).