| Lesson Plan |
| Grade: |
Date: 25/02/2026 |
| Subject: Economics |
| Lesson Topic: Effect of price changes on the amount spent by consumers and revenue raised by firms, shown both in a diagram and as a calculation |
Learning Objective/s:
- Describe how price elasticity determines the effect of price changes on total expenditure and firm revenue.
- Calculate revenue before and after a price change using R = P × Q for elastic, unit‑elastic and inelastic demand.
- Interpret revenue changes from numerical data and from a demand‑curve diagram.
- Apply a checklist to answer exam‑style questions on price changes and revenue outcomes.
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Materials Needed:
- Projector and screen
- Whiteboard and coloured markers
- Printed worksheet with the numerical illustration table
- Calculators
- Handout of a demand‑curve diagram (elastic, unit‑elastic, inelastic sections)
- Student notebooks
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Introduction:
Begin with a quick real‑world example – a supermarket’s price cut on strawberries and its impact on sales. Review the definition of price elasticity of demand and recall the revenue formula R = P × Q. Explain that today’s success criteria are to predict revenue outcomes for different elasticity types and to demonstrate the calculations both numerically and diagrammatically.
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Lesson Structure:
- Do‑now (5') – Short recall quiz on PED definition and formula.
- Mini‑lecture (10') – Explain how elasticity influences total expenditure; illustrate the three cases.
- Guided practice (12') – Work through the numerical illustration table, calculating revenue for each demand type.
- Diagram activity (10') – Students sketch a demand curve with elastic, unit‑elastic and inelastic sections, plot P₀ and P₁, and draw revenue rectangles.
- Independent worksheet (8') – Answer exam‑style checklist questions using a new set of price/quantity data.
- Check for understanding (5') – Exit ticket: state the revenue outcome for a given elasticity and price change.
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Conclusion:
Summarise that revenue rises with a price fall when demand is elastic, rises with a price rise when demand is inelastic, and stays unchanged when demand is unit‑elastic. Ask pupils to write one exit‑ticket statement linking elasticity to revenue. For homework, assign a set of price‑change scenarios for students to calculate revenue and label the corresponding region on a demand curve.
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