Lesson Plan

• Describe the relationship between price, quantity, and total revenue.
• Explain how price elasticity of demand determines revenue changes when sales vary.
• Calculate total, average, and marginal revenue from given price‑quantity data.
• Analyse numerical examples to identify elastic, unit‑elastic, and inelastic regions.
• Apply revenue concepts to make pricing decisions in a practice scenario.

• Projector or interactive whiteboard
• Slide deck with definitions and formulas
• Printed worksheet containing the revenue table and practice question
• Graph paper or digital graphing tool
• Calculator for revenue calculations
• Sticky notes for quick checks

Begin with a short hook asking students to estimate how a retailer’s revenue might change if a popular product’s price drops. Review the basic definition of revenue and link it to prior knowledge of price and quantity. State that by the end of the lesson they will be able to predict revenue outcomes using elasticity concepts.

1. Do‑now (5'): Students write on sticky notes the formula for total revenue and a quick example.
2. Mini‑lecture (10'): Present TR, AR, MR formulas and illustrate with the price‑quantity table.
3. Interactive demonstration (10'): Project the table and discuss how revenue moves across elastic, unit‑elastic, and inelastic sections.
4. Guided practice (12'): Pairs calculate new total revenue for the practice question and identify the demand‑elasticity region.
5. Class debrief (8'): Groups share answers; teacher clarifies misconceptions and reinforces key points.
6. Extension activity (5'): Students sketch a downward‑sloping demand curve, label the three elasticity zones, and annotate revenue trends.

Recap the three ways sales affect revenue and how elasticity determines the direction of change. Collect an exit ticket where each student states one real‑world example of a pricing decision based on revenue analysis. Assign homework: complete a short worksheet calculating revenue for a different price‑quantity scenario.