Objectives (5 - 7 minutes)

1. To understand the concept of Price Elasticity and its role in economics.
   • Define Price Elasticity: The responsiveness of the quantity demanded or supplied to changes in the price.
   • Understand the key factors that determine Price Elasticity: Availability of substitutes, necessity or luxury, time, and proportion of income.
2. To learn about the different types of Price Elasticity.
   • Identify and explain the three types of Price Elasticity: Elastic, Inelastic, and Unit Elastic.
3. To analyze and interpret real-world examples of Price Elasticity.
   • Apply the knowledge of Price Elasticity to decipher the changes in quantity demanded or supplied based on price changes.

Secondary Objectives:

• To foster critical thinking and problem-solving skills through the analysis of real-world examples.
• To enhance collaboration and communication skills through group discussions and activities.

Introduction (8 - 10 minutes)

1. Teacher begins the lesson by reminding students of the basic economic concept of supply and demand. The teacher can use a simple graph or a real-world example to illustrate this. For instance, the teacher can draw a demand curve for a certain product and explain how the quantity demanded changes as the price changes.

2. The teacher then presents two problem situations to the students:

   • Situation 1: "Imagine you are a business owner and you decide to increase the price of your product by 10%. How do you think this will affect the quantity demanded?"
   • Situation 2: "Now, imagine you are a consumer and the price of your favorite snack increases by 10%. How do you think this will affect your decision to buy it?"

3. The teacher contextualizes the importance of the Price Elasticity concept by explaining its real-world applications. For instance, the teacher can mention how businesses use Price Elasticity to determine the impact of price changes on their revenue and how governments use it to set taxes.

4. To introduce the topic and grab the students' attention, the teacher presents two interesting facts or stories related to Price Elasticity:

   • Fact 1: "Did you know that the price of cigarettes is often increased through taxation by governments? This is because cigarettes are considered an inelastic good, meaning that people will continue to buy them even if the price increases."
   • Fact 2: "In the 1980s, Coca-Cola decided to change its formula and introduced 'New Coke'. However, due to the high price elasticity of demand for its original formula, the company had to bring it back as 'Coca-Cola Classic' after a few months."

5. The teacher then formally introduces the topic of the day: Price Elasticity. The teacher can write the term on the board or display a slide with the term. The teacher should also assure the students that by the end of the lesson, they will be able to understand how changes in price affect the quantity demanded or supplied, and how this understanding can be useful in real-world scenarios.

Development

Pre-Class Activities (10 - 15 minutes)

1. Reading Assignment: The teacher assigns the students to read a short article or a chapter from their economics textbook on Price Elasticity. The text should provide a clear and simple explanation of the concept and its applications in real-world scenarios. After reading, students should be prepared to discuss the concepts and examples in class.

2. Video Viewing: The teacher provides the students with a link to an engaging and informative video on Price Elasticity. The video should simplify the concept and provide relatable, real-world examples. Students are encouraged to take notes while watching the video to aid their understanding and provide reference points for class discussions.

3. Online Quiz: The teacher creates an online quiz that covers the reading assignment and the video. The quiz should consist of multiple-choice and short-answer questions that assess the students' understanding of the concept of Price Elasticity and their ability to apply it to real-world situations. The quiz serves as a quick check for understanding and prepares students for in-class activities.

In-Class Activities (20 - 25 minutes)

1. Activity 1: Elastic or Inelastic Game (10 - 12 minutes)

   • The teacher divides the class into small groups of no more than five students each. Each group is given a set of common products, such as apples, smartphones, or gasoline.
   • The teacher then provides different scenarios where the price of these products fluctuates. For example, the scenarios might include a discount, a price hike, and a special offer, among others.
   • Each group has to analyze the given scenarios and decide whether the product is elastic or inelastic based on how they believe the quantity demanded will change. They should justify their decisions using the factors that determine Price Elasticity (availability of substitutes, necessity or luxury, time, and proportion of income).
   • The groups are then required to present their decisions and justifications to the class, fostering discussion and debate about the different scenarios and products.
   • The teacher provides feedback on the groups' decisions, reinforcing correct understanding of the concept and addressing any misconceptions.

2. Activity 2: Price Elasticity Case Studies (10 - 13 minutes)

   • The teacher provides each group with a real-world case study that involves a change in price and its effect on the quantity demanded or supplied. The case studies could include examples from various industries, such as food, technology, or transportation.
   • The groups are tasked to analyze the case studies and determine the type of Price Elasticity involved (elastic, inelastic, or unit elastic), explaining their reasoning based on the factors of Price Elasticity.
   • Each group then presents their case study and analysis, followed by a class discussion on the different applications and examples of Price Elasticity.
   • The teacher provides feedback on the groups' analyses, correcting any inaccuracies and highlighting the key takeaways from each case study.

By the end of these activities, students will have had the opportunity to apply their knowledge of Price Elasticity to real-world situations and engage in critical thinking and collaborative learning. The teacher will have a clear understanding of the students' grasp of the concept and can address any remaining questions or misconceptions.

Feedback (10 - 12 minutes)

1. Group Sharing: The teacher invites each group to share the solutions or conclusions they reached during the in-class activities. Each group is given up to 3 minutes to present, ensuring that every student gets a chance to participate. The teacher facilitates this discussion, asking probing questions and providing constructive feedback to each group.

2. Connection to Theory: After all the groups have presented, the teacher summarizes the key points from the group activities, emphasizing how they relate to the theory of Price Elasticity. The teacher should highlight how the in-class activities allowed the students to apply their theoretical knowledge in practical, real-world scenarios.

3. Addressing Misconceptions: The teacher uses this opportunity to address any misconceptions that may have arisen during the group activities. The teacher can clarify any confusing points, correct any incorrect interpretations, and reinforce the correct understanding of Price Elasticity. This ensures that all students leave the class with a clear and accurate understanding of the topic.

4. Reflection Questions: The teacher then asks the students to take a moment to reflect on what they have learned during the lesson. The teacher can pose questions such as:

   • "What was the most important concept you learned today?"
   • "Can you think of any other real-world examples where Price Elasticity might come into play?"
   • "What questions do you still have about Price Elasticity?"
   • "How can you apply the concept of Price Elasticity in your daily life?"

5. Class Discussion: After the students have had a chance to reflect, the teacher opens the floor for a class-wide discussion. This allows students to share their thoughts and insights, and for the teacher to gauge the overall understanding of the class. The teacher encourages students to ask any remaining questions they might have and provides clear and concise answers.

6. Lesson Closure: Finally, the teacher wraps up the lesson by summarizing the key points about Price Elasticity and its importance in economics. The teacher also reminds the students about any upcoming assignments or assessments related to the topic.

By the end of the feedback session, students should have a clear understanding of Price Elasticity and its real-world applications. They should also feel confident in their ability to analyze and interpret the effects of price changes on quantity demanded or supplied. The teacher should have a good grasp of the students' understanding of the topic and can adjust future lessons accordingly.

Conclusion (5 - 7 minutes)

1. Recap of the Lesson: The teacher summarizes and recaps the main points covered in the lesson. This includes defining Price Elasticity and its three types: Elastic, Inelastic, and Unit Elastic. The teacher also revisits the factors that determine Price Elasticity: availability of substitutes, necessity or luxury, time, and proportion of income. The teacher reminds students of the real-world examples and case studies they used to understand and apply the concept of Price Elasticity.

2. Connecting Theory and Practice: The teacher explains how the lesson connected theory, practice, and applications. The teacher emphasizes that the initial reading and video materials provided the theoretical understanding of Price Elasticity, while the in-class activities allowed students to apply this theory to practical, real-world scenarios. The teacher also highlights how the discussion and reflection activities helped students to understand how Price Elasticity is used in the real world, such as in business decision-making and government policy.

3. Additional Materials: The teacher suggests additional resources for students who want to further explore the concept of Price Elasticity. This could include the names of relevant chapters in their economics textbooks, links to more in-depth articles and videos, and suggestions for real-world examples they could investigate. The teacher emphasizes that these materials are not required, but are there for students who are interested in delving deeper into the topic.

4. Importance of the Topic: The teacher concludes the lesson by explaining the importance of understanding Price Elasticity. The teacher emphasizes that Price Elasticity is a crucial concept in economics as it helps businesses and governments predict and respond to changes in the market. For businesses, understanding Price Elasticity can help in setting prices, predicting sales, and planning production. For governments, it can aid in setting taxes, regulating markets, and formulating economic policies. The teacher also highlights that understanding Price Elasticity can be useful in everyday life, such as when making purchasing decisions or understanding news about the economy.

5. Topic Relevance: Lastly, the teacher emphasizes that Price Elasticity is a topic that is relevant to the students' lives. The teacher can provide examples such as the price changes of their favorite snacks or the impacts of government taxation on products they use. The teacher can also encourage students to be more mindful consumers, considering how Price Elasticity can affect their purchasing decisions. The teacher concludes by reminding students that understanding Price Elasticity can help them make informed decisions in both their personal and professional lives.