| Lesson Plan |
| Grade: |
Date: 04/03/2026 |
| Subject: Economics |
| Lesson Topic: Effect of price changes on sales |
Learning Objective/s:
- Describe the law of demand and how price changes affect quantity demanded.
- Calculate price elasticity of demand (PED) using the standard formula.
- Analyse how elasticity determines the impact of price changes on total revenue.
- Identify the key factors that influence price elasticity.
- Apply elasticity concepts to real‑world pricing decisions.
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Materials Needed:
- Projector or interactive whiteboard
- Slide deck covering demand, elasticity, and revenue
- Calculator worksheets for PED calculations
- Graph paper or digital graphing tool
- Example price‑quantity data handout
- Whiteboard markers
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Introduction:
Begin with a quick poll: “If the price of your favourite snack drops, would you buy more?” Connect this to prior learning of the law of demand and set the success criteria – students will be able to calculate PED and predict revenue outcomes.
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Lesson Structure:
- Do‑now (5') – Students answer the poll and note a personal example of a recent price change.
- Mini‑lecture (10') – Review the law of demand, introduce the PED formula and the three elasticity categories.
- Guided practice (12') – Work through the retailer example to calculate PED and interpret the result.
- Group activity (15') – Teams analyse different price‑quantity scenarios, plot demand curves and decide the effect on total revenue.
- Whole‑class debrief (8') – Groups present findings; teacher highlights factors influencing elasticity.
- Exit ticket (5') – Students write the rule linking elasticity type to revenue change and name one influencing factor.
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Conclusion:
Recap that elastic demand means a price cut raises revenue, while inelastic demand means a price rise raises revenue. The exit ticket reinforces the key rule and a factor affecting elasticity. For homework, assign a worksheet requiring students to calculate PED for three different products and explain the revenue implications.
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