1. Airplanes

2. What is the relationship between the price of these goods and services and consumer behavior? • (Will consumers continue to buy these regardless of price?) • Prescription eyewear • car battery • dental care • pain medication • long-distance phone calls • cell phone • gasoline

3. Elasticity will be effected by: • importance of the product • ease of finding a substitute

4. Group 1: • design an airplane made of the following: • 1-8 ½ X 11 sheet of paper • no name • no number • no required weight • no tools should be used to construct the plane • the plane doesn’t necessarily need to fly

5. Group 2: • design an airplane made of the following: • 2-8 ½ X 11 sheets of paper • name in two colors • number • a paper clip must be used • during construction, you must use glue & scissors • the plane has to fly 6 feet

6. I am the purchasing agent for a major airline. I need to ask you some questions. • How many planes can you make in 10 minutes? • How many resources are used in the manufacturing of your plane? • How many planes can you make for 20 extra credit points?

7. Elastic or Inelastic • Is Group 1’s plane elastic or inelastic, Why? • Elastic • Is Group 2’s plane elastic or inelastic, Why? • Inelastic • Why is it difficult for Group 2to respond quickly to changes in price? • cannot adjust production due to the following: • skill • materials • technique involved