Lesson Plan

• Describe the concepts of price, income, and cross elasticity of demand.
• Explain how each elasticity influences business pricing, production, and market‑entry decisions.
• Apply elasticity formulas to calculate and interpret elasticity values.
• Evaluate how changes in elasticity affect revenue and policy outcomes.
• Analyse real‑world scenarios to choose appropriate strategic responses based on elasticity.

• Projector or interactive whiteboard
• Slide deck summarising formulas and tables
• Worksheet with elasticity calculation exercises
• Printed case‑study handouts (e.g., tax on cigarettes, luxury‑car market)
• Graph paper or digital graphing tool
• Calculator for each student
• Sticky notes for quick polls

Begin with a quick poll: ask students which everyday product they'd be willing to pay more for and why. Link responses to the idea that demand responsiveness varies across goods. Remind learners they have previously explored basic demand curves, and set the success criteria: by the end of the lesson they will be able to calculate elasticities and explain their strategic implications.

1. Do‑now (5') – students calculate a simple PED from a given price‑quantity table and submit the answer on a sticky note.
2. Mini‑lecture (10') – review definitions and formulas for PED, YED, XED with visual diagrams.
3. Guided practice (12') – pairs work on a worksheet: compute PED and interpret revenue impact; compute YED and classify goods; compute XED and identify substitutes/complements.
4. Case‑study analysis (15') – groups examine a real‑world scenario (e.g., tax on sugary drinks) and decide on pricing or policy recommendations using the three elasticities.
5. Whole‑class debrief (8') – groups share recommendations; teacher highlights common misconceptions and links back to decision‑making implications.
6. Exit ticket (5') – students write one concise statement describing how a change in any elasticity would alter a firm’s pricing strategy.

Summarise that elasticity measures demand responsiveness and directly informs pricing, production and policy choices. Ask a few students to share their exit‑ticket statements for quick retrieval. Assign homework: complete a short problem set calculating all three elasticities for a new product and propose a strategic recommendation.