Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: Relationship between PED and the amount spent by consumers and revenue raised by firms
Learning Objective/s:
  • Describe how price elasticity of demand determines changes in consumer expenditure when prices change.
  • Explain the impact of PED on a firm’s total revenue for both price increases and decreases.
  • Apply the PED formula to calculate elasticity and predict revenue outcomes.
  • Analyse real‑world scenarios to choose pricing strategies based on elasticity.
Materials Needed:
  • Projector or interactive whiteboard
  • PowerPoint slides with PED formulas and tables
  • Handout containing worked example and summary table
  • Calculator or spreadsheet software for quick calculations
  • Graph paper or digital graphing tool for demand curves
 Introduction:
Begin with a quick poll: “If the price of your favourite snack dropped, would you buy more?” Connect this to prior learning on demand curves and introduce today’s focus on how price elasticity shapes both consumer spending and firm revenue. Students will be able to calculate PED, interpret its meaning, and predict revenue changes.
Lesson Structure:
  1. Do‑now (5’) – Students answer the poll question and write a brief justification.
  2. Mini‑lecture (10’) – Review PED definition, formula, and elasticity categories with examples.
  3. Guided calculation (12’) – Work through the supplied price‑cut example, compute %ΔP, %ΔQ, PED and total revenue.
  4. Group activity (15’) – Teams analyse a new scenario, plot elastic vs inelastic demand curves, and state the expected revenue effect.
  5. Check for understanding (8’) – Quick quiz via Kahoot/exit ticket summarising the three rules for revenue changes.
Conclusion:
Summarise that elastic demand means price cuts raise both expenditure and revenue, while inelastic demand produces the opposite effect. Ask each pupil to write one real‑world example on a sticky note as an exit ticket. For homework, assign a short worksheet where they calculate PED and predict revenue outcomes for a set of price changes.