Lesson Plan

• Describe the concept of elasticity of demand and differentiate price, income, and promotional elasticity.
• Calculate price, income, and advertising elasticity using the standard formulas.
• Interpret elasticity values to inform pricing, product positioning, and promotional decisions.
• Evaluate how changes in price, income, or advertising affect revenue and market strategy.

• Projector and screen
• Whiteboard and markers
• Calculators (or spreadsheet software)
• Worksheet with elasticity calculation tasks
• Printed summary table of PED, YED, AED
• Graph paper for sketching demand curves

Begin with a quick poll: “If the price of your favourite coffee drops, what happens to your buying habit?” Connect this to students’ prior knowledge of demand curves, then outline that today they will learn how to measure that responsiveness for price, income, and advertising. Success will be shown by correctly calculating and interpreting each elasticity type.

1. Do‑now (5'): short quiz on demand‑curve basics to activate prior knowledge.
2. Mini‑lecture (10'): introduce elasticity, formulas, and interpretation tables.
3. Guided example (10'): calculate PED step‑by‑step using a real‑world price change.
4. Group activity (10'): students work on YED and AED calculations from supplied data sets.
5. Class discussion (5'): each group shares findings and discusses business implications.
6. Exit ticket (5'): write one sentence interpreting an elasticity value for a chosen product.

Recap the three elasticity types and their strategic uses, then collect exit tickets to gauge understanding. Assign homework: complete a worksheet that requires students to gather real‑world data and compute all three elasticities for a product of their choice.