Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
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.
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
 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.
Lesson Structure:
  1. Do‑now (5') – Students answer the poll and note a personal example of a recent price change.
  2. Mini‑lecture (10') – Review the law of demand, introduce the PED formula and the three elasticity categories.
  3. Guided practice (12') – Work through the retailer example to calculate PED and interpret the result.
  4. Group activity (15') – Teams analyse different price‑quantity scenarios, plot demand curves and decide the effect on total revenue.
  5. Whole‑class debrief (8') – Groups present findings; teacher highlights factors influencing elasticity.
  6. Exit ticket (5') – Students write the rule linking elasticity type to revenue change and name one influencing factor.
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.