is your demand for a product when a price changes? Let's say you have
an attack of acute
appendicitis. How much would your demand for a physician's service
change if his or her fee went up by 20%? What if the price of lamb
increased 20%? Do you suppose most people would continue to buy the
same amount of lamb at the higher price? Would they buy much less?
Take a look
at the following list of goods and services. Think about how most
consumers' demand for an item would respond to a change in price.
Move the items around until you are satisfied that they are listed
in order from a high level of responsiveness to a low level of responsiveness.
(Note: In order to participate in this activity
you will need to download Shockwave)
Adapted from McConnell,
C., and Brue, Stanley. Economics, 12th Edition.
New York: McGraw-Hill.