Students will:

• Understand the terms "economic downturn," "weak dollar," "niche market," "income elasticity of demand," and "inelasticity of demand"
• Apply these concepts to an advertising project
• Create two advertisements for back-to-school products for print, television, radio or online media.

The Great Recession has affected some industries and products more than others. How can you predict what will sell in a bad economy and what will not?

Paul Solman reports on business and economic news for The NewsHour with Jim Lehrer. Recently, he took a look at a California clothing company, "Not Your Daughter's Jeans," that seemed to be thriving in recent economic downturn. You will find Paul Solman's "The Business Desk" news story here.

PART 1: Tell students they will explore some of the economic concepts of elastic and inelastic demand featured in the news story.

• Distribute the student handout, Case Study Analysis. Group students into groups of three.
• Before students answer the questions on the handout, review the directions and the case study information with students and point out the highlighted economic concepts: economic downturn, weak U.S. dollar, a niche market, income elasticity of demand, and in-elastic demand. Spend some extra time if needed, to review these terms and make sure they understand these concepts before you show the video. For more information on elastic of demand refer to a lesson on EconEdLink here.
• Show the Paul Solman news segment to the entire class and ask students to look for the explanations of the concepts featured. Then have student groups discuss and answer the questions on the case study analysis in groups. 
• Follow up by reviewing the questions' answers.

PART 2: Now have students complete the assessment assignment

• Create new groups or keep the same groups of 3.
• Distribute the student handout, Marketing to Elasticity of Demand. Review the background and directions.
• If necessary, review the concepts of elasticity and inelasticity of demand from step 4 of the previous activity.
• Use the following information to assist students in identifying which back-to-school products are elastic and inelastic in step 3.
• Provide time for students to complete and present their advertisements.

Elastic (market for these items is competitive with many alternatives, items are not always a necessity)

Inelastic (items are in high demand and considered a necessity regardless of economic condition)

Assessment: Assess student work on the following areas:

• Cooperation and participation in group activities
• Accurate identification of denotative and connotative words
• Accuracy in identifying and applying appropriate advertising techniques to products with elastic and in-elastic demand
• Imaginative ideas incorporated in the advertisements

In Paul Solman's "Business Desk" video on Tummy Tuck Jeans, he uses many phrases and words that have two meanings. These come off as puns, or "rag gags" as he calls them. To start this activity, introduce students to the use of denotative and connotative words. Tell them that some words can have the same or similar definitions can also have different connotations (or meanings) due to social or cultural thinking. Distribute the handout Rag Gags to each student and review the directions. Then show the news segment video.

After students have viewed the news segment, divide the class into groups of three. Assign each group five of the words on the list from the handout and tell them to fill out the chart. After student have completed their charts, discuss some of the ways the news segment used the words and visual cues to further promote the meaning. Also, review the other meanings students thought of for the terms. Then ask students how they might use these terms in advertisements for clothing or any other product.