// LabDemElasticitySpecs.txt. 11/30/2020.

import Foundation

class LabDemElasticitySpecs {

let strDemElasticitySpecs :String = """

`` Lab Specs

-4.0 -0.2 0.2 -1.0	// 0: Specify item 0
0.00 45.00 1.00 20.00	// 1: Specify item 1

600 20.00		// 2: Initial point

0 0 1200 45		// 3: Graph range
Quantity Price		// 4: Axis names
`` Prob Specs

` Problem 0 Start

Screen 1 - Unit Elastic Demand		// 0: Title

// Demand curve type: Visibility and default
F F		// 1: T Visible
T		// 2: T Constant elasticity

// Slider visibility: Both scrollbar and label, scrollbar only, label only, neither
L B		// 3: Constant elasticity, new price

// Initial values
D D		// 4: Elasticity and initial price

` Text Start    // 5: Dialogue
`RED`BLDObjective:`BLD Motivate the price elasticity of demand and explain why unit price elasticity of demand is a natural "benchmark."`BLK

The demand curve is downward sloping. When the price rises the quantity demanded falls; alternatively, when the price falls the quantity rises.

`BLDMotivation:`BLD But how sensitive is the quantity demanded to the price? Will a rise in the price cause a "large" decrease in the quantity demanded or a "small" decrease?

The price elasticity of demand addresses this issue by focusing on the total expenditures for the good:
	`BLDTotal Expenditures = Price x Quantity`BLD

By default, the elasticity equals -1.0, unit elasticity. We will see that when demand is unit elastic, a change in the price is "offset" by the change in quantity demanded.

Note that the initial price and quantity are $20.00 and 600. Total expenditures equal $12,000.00 as reported in the table. On the graph, total expenditures are illustrated by the area within the rectangle outlined by the thick red lines.

Now using the price scrollbar, increase the price from $20.00 to $40.00. Since the price is higher, the quantity demanded falls. The expenditures rectangle changes in two ways:
	`0x2022 The rectangle is higher.
	`0x2022 The rectangle is less wide.
The green region represents the increase in total expenditures resulting from the higher price and the blue region the decrease resulting from the lower quantity.

As the table reports, there is no change in total expenditures. The blue and green regions have equal areas. Unit elasticity represents the "base case." The change in the quantity demanded offsets a change in the price.
` Prob End


` Problem 1 Start
Screen 2 - Inelastic Demand		// 0: Title

// Demand curve type: Visibility and default
F F		// 1: T Visible
T		// 2: T Constant elasticity

// Slider visibility: Both scrollbar and label, scrollbar only, label only, neither
B B		// 3: Constant elasticity, new price

// Initial values
D D		// 4: Elasticity and initial price

` Text Start    // 5: Dialogue
`RED`BLDObjective:`BLD Illustrate inelastic demand.`BLK

We begin with the unit elastic case, the price elasticity equals -1.0. Once again increase the price from $20 to $40. Since demand is unit elastic, total expenditures remain the same. The green and blue regions have equal areas.

`BLDInelastic Demand:`BLD Now, use the demand elasticity scrollbar located above to increase the price elasticity from -1.0 to -.4. When the elasticity exceeds -1.0, demand is inelastic.

`BLDQuestion:`BLD Compared to the unit elastic case, is the change in quantity relatively "small" or "large" when the price rises from $20 to $40?

`BLDQuestion:`BLD Does total revenue increase, decrease, or remain the same?

The green and blue regions illustrate why total revenue increases. Recall that the green region represents the increase in total expenditures and the blue region the decrease. As you can see, the green region is now larger than the blue area and total expenditures increase as seen in the table.
` Prob End


` Problem 2 Start
Screen 3 - Elastic Demand		// 0: Title

// Demand curve type: Visibility and default
F F		// 1: T Visible
T		// 2: T Constant elasticity

// Slider visibility: Both scrollbar and label, scrollbar only, label only, neither
B B		// 3: Constant elasticity, new price

// Initial values: Value of Default
D D		// 4: Elasticity and initial price

` Text Start    // 5: Dialogue
`RED`BLDObjective:`BLD Illustrate elastic demand.`BLK

We begin with the unit elastic case, the price elasticity equals -1.0. Once again increase the price from $20 to $40. Since demand is unit elastic, total expenditures remain the same. The green and blue regions have equal areas.

`BLDElastic Demand:`BLD Use the demand elasticity scrollbar to decrease the price elasticity from -1.0 to -3.0. When the elasticity is less than -1.0, demand is elastic.

`BLDQuestion:`BLD Compared to the unit elastic case, is the change in quantity relatively "small" or "large" when the price rises from $20 to $40?

`BLDQuestion:`BLD Does total revenue increase, decrease, or remain the same?

The green and blue regions illustrate this well. Recall that the green area represents the increase in total expenditures and the blue region the decrease. As you can see, the green region is now smaller than the blue region and total expenditures decrease as seen in the table.
` Prob End



"""

}