Peer Review

Price Elasticity of Demand

Material Detail page

Reviewed:: Nov 14, 2023 by Business

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Ratings

Overall Rating:

Content Quality:

Effectiveness:

Ease of Use:

Overview:

The concept of price elasticity of demand was introduced in class. Elastic and inelastic goods were discussed. The impact that a change in price will have on total revenue was also presented.

This learning approach helps students to work through the thinking process behind determining the effect of price on buying behavior, on interpreting elasticity, and understanding the relationship between elasticity and total revenue. Students are presented with a M/C, T/F, or short answer that requires critical thinking.

Type of Material:

Drill and Practice

Recommended Uses:

This activity is appropriate to use during class or as a homework assignment. It will work in any size class or setting.

Technical Requirements:

Chrome, IE

Identify Major Learning Goals:

1. Describe the relationship between the price of a good and the demand for the good;

2. Interpret the impact a change in price will have on demand based on the price elasticity;

3. Compare the impact that a change in price will have on total revenue based on elasticity.

Target Student Population:

College General Ed, College Lower Division

It can be used with a Principles of Economics class or with an Intermediate Microeconomics class

Prerequisite Knowledge or Skills:

Introduction to the definition and calculation of price elasticity.

Content Quality

Rating:

Strengths:

Concepts, models, and results are valid.
There are several definitions that need to be discussed prior to the exercise; however, they are all appropriate for the content.
Addresses the critical thinking skills of the student.

Concerns:

As the student outlines the thought processes used to solve the question, it is not clear how the student moves from their outline to using their responses as a diagnostic tool to improve their understanding of the concept.

Potential Effectiveness as a Teaching Tool

Rating:

Strengths:

The material promotes the conceptual understanding of the content.
As noted previously, supplying some defined content prior to the exercise will assist the students in understanding the material.
The tool builds on the required knowledge about elasticity to answer multiple-choice, true-false, and short answers on the concept.
These types of assessments are easy to integrate into the curriculum assignments.

Concerns:

Can be time consuming for the student to complete and the instructor to be able to use the responses effectively to help each student.

Ease of Use for Both Students and Faculty

Rating:

Strengths:

Can be a simple and very effective tool to help the student assess the correct approach to answering the question correctly and their understanding of elasticity.
The material is clear and accurate on how to use it for instruction.

Concerns:

This can be an effective critical thinking tool, but there is no guidance given to the student so they know how to what went wrong with their thinking process if they get the answer correct.
Using the tool and follow-up can be time-consuming for the student and instructor.

Other Issues and Comments:

This assessment tool can be used to help a student diagnose their thinking process to answering questions about elasticity.
The student and instructor will also need to invest time to correct incorrect thinking.

Creative Commons: