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RESOURCES: Elasticity

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Relevant text from the Study Design:

  • the meaning and significance of price elasticity of demand and supply
  • factors affecting price elasticity of demand, including degree of necessity, availability of substitutes, proportion of income and time
  • factors affecting price elasticity of supply, including spare capacity, production period and durability
    of goods
VCAA, Economics 2023-2027 Study Design, Unit 3 Outcome 1

Articles

Khan Academy, Elasticity in the Short Term and in the Long Term

  • In the market for goods and services, quantity supplied and quantity demanded are often relatively slow to react to changes in price in the short run, but they react more substantially in the long run.
  • As a result, demand and supply often—but not always—tend to be relatively inelastic in the short run and relatively elastic in the long run.
Khan Academy, Elasticity in the Short Term and in the Long Term

5.1. Price Elasticity of Supply and Demand, John Lynham, Press Books. [This is more advanced than what we are doing on this topic, but worth reading if you are interested in the topic].

Videos

Running Economy, Elasticity (12:55)

Jacob Clifford, Elasticity of Demand (6:12)

Marginal Revolution “University”, Elasticity of Supply (14:75)

Khan Academy, Introduction to Price Elasticity of Demand (8:39) & Introduction to Price Elasticity of Supply (5:37)

Quizes and Interactives

Khan Academy, Price Elasticity of Demand and its determinants & Price Elasticity of Supply and its determinants.

NOTE: The Khan Academy quizes and videos assume we are doing the maths to calculate elasticity, and are probably a little more advanced than what we are currently doing in VCE Economics. Challenge yourself!