| Lesson Plan |
| Grade: |
Date: 03/03/2026 |
| Subject: Economics |
| Lesson Topic: relationship between price elasticity of demand and total expenditure on a product |
Learning Objective/s:
- Describe price elasticity of demand and its three main categories (elastic, inelastic, unitary).
- Explain how the elasticity of demand determines the direction of change in total expenditure when price changes.
- Apply the elasticity‑TE rule to predict revenue outcomes for given price‑quantity scenarios.
- Analyse data to classify demand as elastic, inelastic or unitary.
- Evaluate exam‑style questions that require linking elasticity to total revenue.
|
Materials Needed:
- Projector and screen
- Whiteboard and markers
- Printed worksheets with elasticity tables and TE rectangle templates
- Calculators
- Graph paper
- Handout of the demand‑curve diagram with TE rectangles
|
Introduction:
Begin by asking students to recall a recent product whose price changed and how their spending responded. Review that they already know percentage‑change calculations and basic demand curves. State the success criteria: students will be able to state the rule linking price elasticity to total expenditure and illustrate it with a diagram.
|
Lesson Structure:
- Do‑now (5') – Quick quiz on elasticity formulas and sign conventions.
- Mini‑lecture (10') – Review PED categories, the TE formula (TE = P × Q), and the elasticity‑TE rule.
- Guided practice (12') – Using the provided table, students fill in the effects of a price rise and fall for each elasticity category.
- Diagram activity (10') – In pairs, draw a demand curve and add TE rectangles for an elastic and an inelastic case.
- Case‑study analysis (8') – Given a short scenario, determine the elasticity and predict the change in total expenditure.
- Check for understanding (5') – Exit ticket: write the one‑sentence rule that connects price elasticity to total expenditure.
|
Conclusion:
Recap the key rule: with elastic demand, price and total expenditure move in opposite directions; with inelastic demand, they move together. Collect the exit tickets and clarify any lingering misconceptions. For homework, assign a worksheet containing additional price‑change scenarios for students to classify and predict total expenditure outcomes.
|