Lesson Plan

• Define price, income and cross‑price elasticity and state the formulae for each.
• Calculate elasticity values using the arc method and interpret the results.
• Classify elasticity outcomes into perfectly elastic, highly elastic, unitary, highly inelastic, and perfectly inelastic.
• Explain how each elasticity category informs pricing, tax and policy decisions.

• Projector and screen
• Whiteboard and markers
• Student worksheets with elasticity tables and practice problems
• Calculators (or spreadsheet access)
• Printed diagrams of demand curves showing the five elasticity sections
• Exit‑ticket slips

Begin with a quick poll: “If the price of your favourite snack doubled, would you still buy it?” Use responses to highlight that not all goods react the same way to price changes. Recall that students already know the basic demand curve. Explain that today they will learn to quantify those reactions and label them with precise elasticity terms. Success will be measured by accurate calculations and correct classification of elasticity categories.

1. Do‑Now (5’) – Students complete a short quiz on percentage change calculations.
2. Mini‑lecture (10’) – Introduce the three elasticity formulas (PED, YED, XED) and the arc method.
3. Guided practice (12’) – Work through a sample PED calculation on the board, interpreting the result.
4. Group activity (15’) – Teams use worksheets to calculate and classify elasticity values for provided scenarios (price, income, cross‑price).
5. Concept check (5’) – Quick “thumbs up/down” poll on each elasticity category; teacher clarifies misconceptions.
6. Diagram labeling (8’) – Students label a demand‑curve diagram with the five elasticity sections.
7. Recap & Q&A (5’) – Summarise key points and answer lingering questions.

Review the five elasticity categories and how they guide business and policy decisions. For the exit ticket, ask students to write one real‑world example of a perfectly elastic good and one of a highly inelastic good. Assign homework: complete additional elasticity calculations from the textbook and prepare a short paragraph on how elasticity influences pricing strategy.