SHS3 Economics · Semester 1 Week 1: Demand for Goods and Services

Lesson notes

Learning Objectives

Indicator: 3.1.2.LI.1 - Calculate Elasticity of Demand for goods and services.

By the end of the lesson, learners can:

Define price elasticity of demand in their own words and explain what the coefficient measures.
Apply the percentage change formula to calculate the coefficient of price elasticity of demand given two price and quantity points.
Use the midpoint (average) method to calculate elasticity of demand and explain why it gives a consistent result.
Classify calculated elasticity coefficients as elastic, inelastic, unitary elastic, perfectly elastic or perfectly inelastic.
Interpret what a given elasticity coefficient means for a business or consumer in practical terms.

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Curriculum details

Strand: Consumers' Rational Decision Making (Strand 1)
Sub-strand: Demand for Goods and Services (1.2)
Content standard: 3.1.2.CS.1 - Demonstrate knowledge and understanding of elasticity of demand for goods and services. 3.1.2.LO.1 Interpret elasticity of demand.
Indicator: 3.1.2.LI.1 - Calculate Elasticity of Demand for goods and services.
Suggested placement: Semester 1, Week 1 (Week 1 of the year)
Our suggestion, laid out in curriculum order across three terms of twelve weeks. NaCCA does not fix the week, so follow your school's scheme of learning.
Curriculum reference: NaCCA curriculum document, p. 92

Exemplars (from the NaCCA curriculum)

Group Work/Collaborative Learning: Work in mixed ability groups to calculate elasticity of demand and types of elasticity of demand. Respect individuals from different backgrounds by working collaboratively. Learners learn to be content with their individual and group strengths through self-awareness and social awareness.
Assessment (3.1.2.AS.1). The document marks these depth-of-knowledge levels for this indicator: Level 3 Strategic reasoning; Level 4 Extended critical thinking and reasoning.
Teaching and Learning Resources:
- Marker
- White board
- Projector
- Computers
- Pen
- Pencil
- Ruler
- Exercise books