In-Class Work
Read pages 122-124 and answer Q’s – 10 min. Watch video on Price Elasticity of Supply – 10 min.
Discuss Q’s – 20 min.
What does Price Elasticity of Supply mean?
If supply __________, producers can increase output without a rise in cost or a time delay
If supply is ________, firms find it hard to change production in a given time period.
How do we calculate Price Elasticity of Supply?
What is a market period?
Your book gives the market period example of a tomato farmer. Cite another example and give explanation to your example.
What is the difference between the short run and long run in price elasticity of supply?
What are applications of Price Elasticity of Supply per your book & examples that you can think of?
Video:
Draw a graph that shows the area for the price elasticity of supply.
Draw a graph that shows perfect inelastic supply.
Draw a graph that shows perfect elasticity supply.
Draw a graph that shows unit elasticity supply & explain.

AP Test Preparation:
For each of the following price changes, calculate the price elasticity of supply.
1 A 10% increase in price results in a 15% increase in the quantity supplied.
2 A 6% increase in price results in a 3% increase in the quantity supplied.
3 True or False.
When the price of a pizza is $20, 10 pizzas are supplied and when the price rises to $30 a pizza, 14 pizzas are supplied. Using the midpoint method, the price elasticity of supply of pizzas is 0.83.
4 If a firm supplies 200 units at a price of $50 and 100 units at a price of $40, using the midpoint formula, what is the price elasticity of supply?
A 0.33
B 1.00
C 3.00
D 5.00
E 8.50