Lesson Notes By Weeks and Term - Senior Secondary 2

Elasticity of demand and supply I

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  4. Elasticity of demand and supply I

Term: 1st Term

Week: 6

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Economics

Topic:-       Elasticity of demand and supply II

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Explain the meaning of elasticity of supply
  2. List and explain the types of elasticity of supply
  3. Enumerate the factors that determine the elasticity of supply

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on elasticity of demand

Students pay attention

STEP 2

EXPLANATION

She explains the meaning of elasticity of supply

Students pay attention and participates

STEP 3

DEMONSTRATION

She lists and explains the types of elasticity of supply. She enumerates the factors that determine the elasticity of supply

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

ELASTICITY OF SUPPLY

 

Elasticity of supply measures the degree of responsiveness of the quantity of a commodity offered for sale to a little change in the price of that commodity or to a change in the cost of production.

TYPES OF ELASTICITY OF SUPPLY

1. Elastic Supply: Supply is elastic if a little change in the price of a commodity or cost of production brings about a more than proportional change in the quantity supplied.

2. Inelastic Supply: Supply is inelastic if a little change in the price or the cost of production brings about a less than the proportional change in the quantity of the commodity supplied.

3. Unitary Elastic Supply: Elasticity of supply is unitary (or unity) if a change in price or cost of production brings about a proportional change in the quantity of the commodity sold.

4. Perfectly Elastic supply or Infinitely Elastic Supply: a little increase in the price of the commodity would result in the supply of all the stock of that commodity available and vice versa.

5. Perfectly Inelastic Supply: This indicates that changes in price do not bring any change in the quantity supplied.

 

MEASUREMENT OF ELASTICITY OF SUPPLY

The elasticity of supply can be determined or measured by calculating the co-efficient of the elasticity of supply.

The elasticity of supply can be determined or measured by calculating the co-efficient of the elasticity of supply.
Co-efficient of price elasticity of supply = (% chage in Quantity Supplied)/(% change in price) Negative signs are ignored.

 

Example

Price (N) Quantity supplied
4 10
6 12

Calculate co-efficient of elasticity of supply
What type of supply is this
How do you know

Solution

Change in quantity supplied

FACTORS THAT DETERMINING ELASTICITY OF SUPPLY

  1. i) Cost of production
  2. ii) Time lag

iii) Availability of market

  1. iv) Availability of storage facilities
  2. v) Cost of storage vi) Ease of entry and exit for new firm

vii) Product durability Price Elasticity of Supply

 

EVALUATION:    1. Define elasticity of supply

  1.           List and explain the types of elasticity of supply
  2. Enumerate four factors that determine the elasticity of                    supply

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively