Price elasticity of demand survey
Working in small groups, students are assigned a good or service and asked to predict its price elasticity of demand. Students then conduct a survey of classmates to gather data that can be used to calculate the elasticity. Students compare the calculated elasticity with the expected elasticity and explain its value based on the textbook's determinants of elasticity.
Context for Use
Description and Teaching Materials
2. Working as a group, students estimate the price elasticity of demand for this item. Then they survey classmates, first of their own willingness to buy the good or service, and then a survey of at least one other group in the class.
3. After calculating the price elasticity of demand, students compare the result with their initial estimate and answer follow-up questions on the worksheet.
Price elasticity of demand survey worksheet (Microsoft Word 22kB Jul29 12)
Teaching Notes and Tips
In order for groups to share their results, ask one person from each group to put the result and name of the item on a number line (running from 0 to 6.0 in order to accommodate likely calculated elasticities) After the surveys are complete, use the number line for class discussion about the reasons for item's elasticity/inelasticity.
Ask students what would cause the measured elasticities to increase or decrease. Use this discussion to reintroduce the determinants of elasticity.