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Authentic Economics Applicationsfor a Math Classroom
Adam LavalleeEpiscopal Academy
Authentic Economics Applicationsfor a Math Classroom
• How many times can you write the word Economics in 30 seconds?
Timer:
Marginal Production
• Increasing Returns to Scale– Efficiency
• Decreasing Returns to Scale– “Too Many Cooks in the Kitchen”
Workers Production Marginal Product
1
2
3
4
5
Dollar Dog Night
• On Dollar Dog night at Citizens Bank Park, Philadelphia Phillies Phans buy 60,000 hot dogs.
• On a normal night, hot dogs cost $4 and 15,000 are purchased.
• This data reveals the Law of Demand: that people will buy more when the price is less.
• We can find an equation for the law of demand using these two points: (15, 4) and (60, 1)
Dollar Dog NightFind the linear equation of the Demand for hot dogs.
Dollar Dog Night Questions
• If the Phillies gave hot dogs away for free, how many hot dogs would they give away?
• How many hot dogs will people buy if the price is $2?
• At what price will no one buy any hot dogs?
Dollar Dog Night Extensions
• Give a supply curve and ask students to find the intersection.
• Create a Revenue function (Price x Quantity)– Maximize Revenue
Create a Business
• What is your Product?• What is the demand for your product?– Sell All Price & Sell None Price
• Revenue: R = P×Q– Use linear demand– Revenue is a Quadratic
• Cost– Linear cost
Create a Business
• Maximize Profit (Profit = Revenue – Cost)– How much should your company produce to
maximize profit?– How much should you sell your product for in
order to maximize profit.– What will your profits be?
Using Economics in Calculus
• Derivative = Marginal… everything…• Linear Programming & constrained
maximization– Maximize Utility constrained by budget
Using Economics in PreCalculus
• Interest• Beyond P=ert
Credit Card Offers
Credit Card Offer
Offer 1• 0% for 12 months• Then 16%
• Which is better?• Under what conditions is
each better?• Which offer do people most
often choose?• What happens if you don’t
pay back?
Offer 2• 2% for 15 months• Then 16%