Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: implications for speed and ease with which firms react to changed market conditions
Learning Objective/s:
  • Describe the concept of price elasticity of supply and how the coefficient is calculated.
  • Explain how time horizon, spare capacity, factor mobility and regulatory constraints affect the speed and ease of a firm’s response.
  • Analyse real‑world examples (e.g., fresh fruit vs. steel) to illustrate elastic and inelastic supply.
  • Evaluate the strategic implications for firms when supply is elastic or inelastic.
  • Apply the elasticity framework to answer an exam‑style question.
Materials Needed:
  • Projector and screen
  • PowerPoint slides with PES formula, diagram and case‑study visuals
  • Printed handout of the determinants table
  • Worksheet for scenario analysis
  • Calculators
  • Sticky notes for group brainstorming
 Introduction:
Recent spikes in commodity prices have left many students wondering why some firms can ramp up production instantly while others cannot. Building on their prior knowledge of price elasticity of demand, we will explore the counterpart – price elasticity of supply – and identify what makes supply responses fast or slow. By the end of the lesson students will be able to explain key determinants and assess their strategic impact.
Lesson Structure:
  1. Do‑now (5'): Quick quiz on the definition and formula of price elasticity of supply.
  2. Mini‑lecture (10'): Present the PES coefficient, interpretation, and a diagram of elastic vs. inelastic supply.
  3. Determinants activity (15'): In groups, examine the determinants table and match each factor with a real‑world industry example.
  4. Case‑study comparison (10'): Whole‑class discussion of fresh fruit vs. steel production, creating a mind map of response speeds.
  5. Strategic implications debate (10'): Students argue how firms with elastic or inelastic supply should behave in a price surge.
  6. Exit ticket (5'): Write a brief answer to the exam‑style prompt on how PES influences firm response.
Conclusion:
We recap the five key determinants that shape how quickly firms can adjust output and highlight the strategic choices they entail. Students submit their exit tickets, which will be used for immediate feedback. For homework, each student selects a local industry, researches its supply characteristics, and writes a short paragraph describing its likely elasticity and why.