Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
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:
  1. Do‑now (5') – Quick quiz on elasticity formulas and sign conventions.
  2. Mini‑lecture (10') – Review PED categories, the TE formula (TE = P × Q), and the elasticity‑TE rule.
  3. Guided practice (12') – Using the provided table, students fill in the effects of a price rise and fall for each elasticity category.
  4. Diagram activity (10') – In pairs, draw a demand curve and add TE rectangles for an elastic and an inelastic case.
  5. Case‑study analysis (8') – Given a short scenario, determine the elasticity and predict the change in total expenditure.
  6. 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.