Lesson Plan

• Describe what price elasticity of demand (PED) measures and how to interpret its magnitude.
• Apply the midpoint (arc) method to calculate PED from given price and quantity data.
• Analyse the results of a PED calculation to determine whether demand is elastic, inelastic or unit‑elastic.
• Use a calculator or spreadsheet to perform the required percentage‑change computations accurately.

• Projector or interactive whiteboard
• Calculator or spreadsheet software
• Worksheet with price‑quantity tables (including the tea example)
• Graph paper and coloured pens for sketching demand curves
• Exit‑ticket slips

Begin with a quick poll: “When the price of a favourite snack rises, how does your buying behaviour change?” Connect responses to the concept of elasticity and state that today students will learn a precise way to measure this change. Explain that by the end of the lesson they will be able to calculate PED and interpret its economic significance.

1. Do‑now (5'): Students answer a short question on the definition of elasticity and submit responses on sticky notes.
2. Mini‑lecture (10'): Present the PED formula and the midpoint method, highlighting each component with the projector.
3. Guided practice (15'): Work through the tea example step‑by‑step, students calculate each percentage change on their worksheets.
4. Paired activity (10'): Provide a new price‑quantity scenario; pairs calculate PED, then compare answers.
5. Check for understanding (5'): Whole‑class discussion of results and a rapid exit‑ticket question (“What does a PED of –0.5 indicate?”).

Summarise the key steps of the midpoint calculation and reinforce how the sign and magnitude of PED guide business and policy decisions. Collect exit tickets as a quick retrieval check and assign homework: students must find a real‑world price change (e.g., a recent fuel price rise) and compute the PED using the taught method.