Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: factors affecting: income elasticity of demand
Learning Objective/s:
  • Describe the concept and formula of income elasticity of demand.
  • Classify goods as normal, inferior, necessity or luxury using elasticity values.
  • Analyse how at least three factors (e.g., nature of the good, proportion of income, time horizon) influence income elasticity.
  • Apply the identified factors to evaluate likely demand changes for a given good in exam‑style scenarios.
  • Construct and interpret a demand‑curve shift diagram that illustrates income‑elastic effects.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck summarising definitions and factors
  • Handout with the summary table of goods and elasticity values
  • Worksheet with exam‑style question prompts
  • Calculator (optional)
  • Whiteboard markers and chart paper for group diagram work
 Introduction:
Begin with a quick poll: “If your weekly allowance doubled, which items would you buy more of?” Connect this to prior learning of price elasticity and set the success criteria – students will explain income elasticity, identify influencing factors, and apply them to exam questions.
Lesson Structure:
  1. Do‑now (5') – students answer the poll question and note one good they would increase or decrease consumption.
  2. Mini‑lecture (10') – review definition, formula, and classification of goods using slides.
  3. Guided analysis (15') – pairs examine three factors from the list and predict their effect on a chosen good; teacher circulates.
  4. Diagram activity (10') – groups draw a demand‑curve shift on chart paper for a normal good as income rises and share interpretations.
  5. Exam checklist practice (10') – students complete a short worksheet applying the five‑step exam checklist to a sample question.
Conclusion:
Summarise that income elasticity varies with the nature of the good, income share, substitutes, preferences, time horizon and development level. Ask each student to write one key factor they will remember on an exit ticket. For homework, assign a past‑paper question requiring analysis of income‑elasticity factors.