Lesson Plan

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Lesson Plan
Grade: Date: 05/03/2026
Subject: Economics
Lesson Topic: definition of price elasticity, income elasticity and cross elasticity of demand (PED, YED, XED)
Learning Objective/s:
  • Define price, income, and cross elasticity of demand and state their formulas.
  • Classify demand as elastic, unit‑elastic, or inelastic using the magnitude and sign of PED.
  • Explain how YED indicates normal, inferior, luxury, or necessity goods.
  • Interpret XED to identify substitutes or complements and assess the strength of the relationship.
  • Apply key determinants to predict elasticity outcomes and discuss implications for pricing and policy.
Materials Needed:
  • Projector and screen for slides/diagrams
  • Whiteboard and markers
  • Printed worksheet with elasticity formulas and practice questions
  • Graph paper and calculators for student calculations
  • Sample price/income data sets (digital or printed)
 Introduction:
Begin with a quick poll: “If the price of coffee rises, how will your purchase change?” linking to prior knowledge of demand curves. Review the concept of responsiveness and outline today’s success criteria: students will accurately define and calculate PED, YED, and XED, and interpret their economic meaning. This sets the stage for deeper analysis of market behavior.
Lesson Structure:
  1. Do‑now (5’) – students complete a short exit ticket from the previous lesson on demand shifts.
  2. Mini‑lecture (10’) – present definitions, formulas, and sign conventions for PED, YED, XED with projected diagrams.
  3. Guided practice (12’) – work through sample calculations on the worksheet; teacher circulates to check understanding.
  4. Group activity (15’) – each group analyses a real‑world data set, determines elasticity type, and sketches the appropriate demand‑curve shift.
  5. Class discussion (8’) – groups share findings; teacher highlights determinants and policy implications.
  6. Quick quiz (5’) – formative multiple‑choice on interpreting elasticity signs.
Conclusion:
Summarise how each elasticity measures a different aspect of consumer response and why the sign matters for business and policy decisions. Students complete an exit ticket writing one real‑world example for each elasticity. Assign homework: finish the worksheet problems and prepare a brief paragraph on how a tax on sugary drinks would affect PED and XED.