Lesson Plan

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Lesson Plan
Grade: Date: 18/01/2026
Subject: Economics
Lesson Topic: Implications of PED for decision-making by consumers, workers, producers/firms and government
Learning Objective/s:
  • Describe how price elasticity of demand influences consumer purchasing decisions.
  • Explain the impact of PED on workers' employment and wage negotiations.
  • Analyse how firms use PED to set prices, maximise revenue and plan production.
  • Evaluate government policy choices (taxes, subsidies, price controls) based on PED.
  • Apply PED concepts to real‑world case studies such as tobacco taxes and electric‑car subsidies.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Handout summarising PED formula, classifications and stakeholder implications
  • Worksheet with calculation exercises and case‑study questions
  • Calculator for students
  • Sticky notes for exit ticket
 Introduction:
Begin with a quick poll: “If the price of your favourite smartphone rose by 10 %, would you still buy it?” This links to prior learning on demand curves and sets the success criteria – students will interpret PED and apply it to decisions made by consumers, firms, workers and governments.
Lesson Structure:
  1. Do‑now (5 '): Calculate PED from a simple price‑quantity table; post answer on a sticky note.
  2. Mini‑lecture (10 '): Review PED formula, classification, and illustrate elastic vs. inelastic segments on a projected diagram.
  3. Stakeholder analysis activity (15 '): In groups, examine case studies (cigarette tax, electric‑car subsidy, minimum‑wage) and identify implications for each stakeholder; record on worksheet.
  4. Firm pricing simulation (10 '): Using a spreadsheet, adjust price for a product with given elasticity to maximise revenue; discuss outcomes.
  5. Government policy debate (10 '): Teams argue for or against a tax on an inelastic good versus a subsidy on an elastic good, citing welfare effects.
  6. Check for understanding (5 '): Quick quiz via Kahoot or hand‑raised responses covering key concepts.
Conclusion:
Summarise how PED shapes decisions across all economic agents and highlight the key take‑aways. For the exit ticket, ask students to write one example of a policy effective for an elastic good and one for an inelastic good. Homework: complete the worksheet calculating PED for three additional products.