Lesson Plan

• Describe the concept of price elasticity of supply and how it is calculated.
• Explain how time horizon, input availability, production capacity, factor mobility, production complexity, storage possibilities, and regulatory constraints influence supply elasticity.
• Analyse the effect of the time horizon on supply responsiveness using numerical examples.
• Apply the determinants of supply elasticity to predict market reactions to policy changes such as taxes or price controls.

• Projector or interactive whiteboard
• Slide deck summarising PES and its determinants
• Handout with the factor table and example calculations
• Graph paper, rulers and coloured markers
• Worksheet with policy‑scenario questions

Begin with a quick poll: “When the price of a product rises, does its quantity supplied always increase at the same rate?” Connect this to prior learning on price elasticity of demand and outline today’s success criteria – students will identify the key determinants of supply elasticity and predict market responses.

1. Do‑now (5'): Students answer the poll and write a brief justification; teacher collects responses.
2. Mini‑lecture (10'): Review the PES formula and interpretation of elastic, unitary and inelastic supply.
3. Interactive exploration (15'): Present the factor table; in pairs, discuss each factor’s effect on elasticity and record real‑world examples.
4. Graph activity (10'): Learners sketch short‑run and long‑run supply curves for a 10% price increase and calculate the resulting quantity changes.
5. Policy case study (10'): Groups analyse a tax or price‑floor scenario, applying the determinants to predict incidence and market impact.
6. Check for understanding (5'): Quick quiz via Kahoot or an exit‑ticket question.

Recap that time horizon, input availability, capacity, factor mobility, production complexity, storage options and regulations shape how responsive supply is to price changes. Students write one key takeaway on a sticky note as an exit ticket. For homework, complete a worksheet evaluating the elasticity of supply for an industry of their choice.