Lesson Plan

• Describe the five categories of price elasticity of demand and their numeric ranges.
• Explain how each elasticity type influences total revenue and pricing decisions.
• Calculate PED using the formula and interpret the resulting value.
• Analyse real‑world examples (taxes, subsidies, pricing changes) to identify likely elasticity.

• Projector and screen
• Whiteboard and markers
• Printed PED worksheet & diagram handouts
• Calculators (or spreadsheet access)
• Interactive clicker/Kahoot for quick polls

Begin with a rapid poll: “If the price of a popular smartphone rises by 10 %, what happens to its sales?” Connect responses to students’ prior knowledge of the demand curve and the law of demand. Explain that today they will learn how to measure that responsiveness with the price elasticity of demand and what the different values mean. Success criteria: by the end of the lesson students will be able to calculate PED, classify its value, and explain the revenue implications.

1. Do‑now (5'): Quick recall questions on the law of demand displayed on the board; students write answers on sticky notes.
2. Mini‑lecture (10'): Introduce the PED formula, why the sign is ignored, and the five elasticity categories.
3. Guided practice (15'): Work through the provided example (price $10 → $12, quantity 500 → 400) in pairs, calculate PED and interpret the result.
4. Interactive activity (10'): Using clicker/Kahoot, students match real‑world scenarios (tax on cigarettes, luxury car price rise, etc.) to the correct elasticity type.
5. Diagram labeling (10'): Hand out demand‑curve diagrams; students label each curve as perfectly inelastic, inelastic, unitary, elastic, or perfectly elastic and annotate a small price change.
6. Check for understanding (5'): Exit ticket – write one sentence interpreting a given PED value (e.g., |PED| = 2.5).

Summarise the key take‑aways: the numeric ranges for each elasticity type and how they affect total revenue. Collect exit tickets and highlight a strong response. For homework, students complete two additional PED calculations and write a short paragraph on how a government might use elasticity information when deciding on a tax or subsidy.