Act III Β· Casting the Sellers Β· Module 08
Profit and Sensitivity
Price elasticity of supply
9 slides Β· Hubbard & O'Brien, chapter 6 (Part B).
The story
Where this fits in Marginal Falls
The bakery has chosen its output, but how far can it expand when pastry prices rise? Capacity, the availability of inputs, and time determine how responsive sellers can be. The slide deck introduces this module as Seller Sensitivity.
A question to take into class
Why might the bakery respond little to a price increase tonight but much more over the next year?
From the slides to the classroom
Activities used in this module
This module is taught through its slide deck and classroom discussion. No dedicated live activity is used for this topic.
Activities open at marginalfalls.com. Students join using the room code supplied by their instructor.