Lesson Plan for Senior Secondary 2 - Economics - Elasticity Of Demand

Certainly! Below is a comprehensive lesson plan for Senior Secondary 2 students on the topic "Elasticity of Demand" in Economics. ### Lesson Plan: Elasticity of Demand **Class**: Senior Secondary 2 **Subject**: Economics **Lesson Length**: 60 minutes --- #### **Objectives:** By the end of the lesson, students will be able to: 1. Define and understand the concept of elasticity of demand. 2. Differentiate between various types of elasticity of demand: price elasticity, income elasticity, and cross-price elasticity. 3. Calculate elasticity of demand using given data. 4. Analyze factors that affect elasticity of demand. 5. Understand the implications of elasticity on consumer behavior and business decisions. #### **Materials Needed:** - Whiteboard and markers - Projector and computer - Handouts with elasticity formulae and sample exercises - Graph paper and rulers - Calculator --- #### **Lesson Outline:** **1. Introduction (10 minutes)** - **Greetings & Attendance:** Start with a quick greeting and take attendance. - **Review Previous Lesson:** Briefly recap the previous topic on demand to ensure continuity. - **Introduction to Elasticity of Demand:** Introduce the topic and explain its importance in economics using a real-world scenario (e.g., How a rise in the price of gasoline affects driving habits). **2. Explanation & Discussion (20 minutes)** - **Definition & Concept:** - Explain **elasticity of demand** as a measure of how quantity demanded of a good responds to a change in price. - Introduce terms like **price elasticity of demand (PED)**, **income elasticity of demand (YED)**, and **cross-price elasticity of demand (XED)**. - **Formulae:** - Write the formulae on the board: - PED = (% Change in Quantity Demanded) / (% Change in Price) - YED = (% Change in Quantity Demanded) / (% Change in Income) - XED = (% Change in Quantity Demanded of Good A) / (% Change in Price of Good B) - **Types of Elasticity:** - Discuss and provide examples: - **Elastic Demand**: When elasticity is greater than 1 (e.g., luxury goods). - **Inelastic Demand**: When elasticity is less than 1 (e.g., necessities). - **Unitary Elasticity**: When elasticity is exactly 1. - Mention perfect elasticity and perfect inelasticity as special cases. **3. Collaborative Activity (15 minutes)** - **Group Exercise:** - Divide the class into small groups. - Hand out worksheets with practical problems on elasticity (calculations, identifying types of elasticity, and interpreting results). - Have each group work together to solve the exercises. - **Discussion:** - Choose some groups to present their findings and calculations to the class. - Clarify any misunderstandings and provide feedback. **4. Application & Analysis (10 minutes)** - **Factors Affecting Elasticity:** - Discuss factors that influence elasticity of demand, including availability of substitutes, necessity versus luxury, proportion of income spent on the good, and time period considered. - **Implications for Business & Policy:** - Explain how businesses use elasticity to set pricing strategies. - Discuss the importance of elasticity in tax policy and public transportation planning. **5. Recap & Q&A (5 minutes)** - **Summary:** - Recap the key points covered in the lesson. - Reiterate the importance of understanding elasticity in economic decision-making. - **Q&A Session:** - Open the floor for any questions from students to ensure they have understood the topic. **6. Homework Assignment (if applicable):** (Homework to reinforce the day's lesson) - Assign students a set of problems on elasticity to practice at home. - Encourage students to find a real-world example of elasticity and write a brief paragraph explaining it. --- #### **Assessment:** - Observe student engagement during group activities and discussions. - Check the accuracy of the group exercise solutions. - Review homework assignments in the next class to assess individual understanding. --- #### **Wrap-Up:** - Conclude the lesson by highlighting the importance of elasticity in everyday life and in making informed economic choices. - Thank the students for their participation and remind them to review their notes for better retention. --- This lesson plan ensures a balanced combination of theoretical knowledge, practical application, and interactive discussion, catering to the learning needs of Senior Secondary 2 students.