Week 7 L1 & L2 PED

5 TO BEGIN
1
Last Week:
When there is change in Change in price results in a
price, which results in a greater change in quantity
2
smaller change in demanded is ___________
quantity demanded
______________
3
4
Current Learning: Research, what is the
If the value of PED is difference between fraction
less than 1, demand will and decimal
5 be elastic or inelastic?
1 min 2 3 mins 4 mins 5

mins
You have 5 mins to attend your classroom on time, enter in a quiet and orderly manner,
sit where you are told without argument, have equipment out ready for learning and
complete the settler activity in silence.
Self Check (Use green pen)
Inelastic demand Elastic demand
Inelastic
Topic: 8 Price elasticity of demand
LO: Differentiate between elastic, inelastic, and unitary

demand based on the numerical value of elasticity
Success Criteria:
- Interpret the numerical value of price elasticity of demand
(PED)
- I can accurately calculate total revenue by using formula
- Recommendation either to increase or decrease in price as
per the situation with suitable explanation
- I can solve exam style questions of PED
Real-life applications
Inventory and Production Planning
Application: Businesses with elastic products may adjust production levels or
inventory based on expected changes in price or external factors affecting
consumer behavior.
Example: A fashion retailer might reduce production or hold back on inventory if
they anticipate price reductions in response to a seasonal sale, as demand is
often elastic for clothing.
Interpreting the numerical values of
elasticity
• If the value of PED is less than 1(that is, a
fraction or a decimal), demand is said to be
inelastic.
• If the value of PED is greater than 1, demand
is said to be elastic.
• If the value of PED is zero, demand is said to
be perfectly inelastic.
• If PED is equal to infinity (∞), demand is said to
be perfectly elastic.
If PED is exactly -1, demand is said to have
unitary elasticity.
@ASPSDubai
Critical Thinking
Dteremine the
elasticity of
demand
for Product A and
B
@ASPSDubai
Elasticity and slope
Research and draw diagram of perfectly inelastic demand

Elasticity and slope
What are the reasons of perfectly inelastic demand where

PED = infinity
5
Economics in practice
Research what is the reason for demand curve slopping

downwards
5
Factors Affecting Price elasticity of demand Pg 53-54
Group A
 Availability of
substitutes
 Degree of Group B
necessity  Poportion
of income
spent
 Time
Group C
Relationship
between PED and
total revenue
Group 2 (case study from textbook Pg 56)
Success Criteria:
 Interpret the numerical
value of price elasticity of
demand (PED)
- I can accurately
calculate total revenue
by using formula
- Recommendation either
to increase or decrease
in price as per the
situation with suitable
explanation
- I can solve exam style
questions of PED
Calculate the PED for Ng Chocolates and state whether demand for Ng
Chocolates is elastic or inelastic.
Success Criteria:
- Interpret the numerical
demand (PED)
 I can accurately calculate
Continuation of case
total revenue by using
study
formula
 Calculate the change
- Recommendation either to
in total revenue for Ng increase or decrease in
Chocolates if Ng price as per the situation
lowers the price to with suitable explanation
CNY 16. - I can solve exam style
questions of PED
Success Criteria:
- Interpret the numerical
Continuation of case study demand (PED)
 Should Ng lower the price - I can accurately calculate
total revenue by using
of their chocolates to CNY
formula
16? - Recommendation either to
 Explain your answer. increase or decrease in
price as per the situation
with suitable explanation
- I can solve exam style
questions of PED
Peer Assessment
Group 5 (MCQS from textbook Pg 56) Success Criteria:
- Interpret the
numerical value of
price elasticity of
demand (PED)
- I can accurately
calculate total
revenue by using
formula
- Recommendation
either to increase or
decrease in price as
per the situation
with suitable
explanation
- I can solve exam
style questions of
PED
Self Assessment
Plenary Use green pens to highlight the
ones you have achieved.
I can differentiate
between different
I understand types of elasticity
what is PED
Calculation of
PED Objectives I
have met! I can explain
factors affecting
PED
Interpretatio
n of
diagrams I can give answers of
MCQS independently

Week 7 L1 & L2 PED

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5 TO BEGIN

1 min 2 3 mins 4 mins 5

Inelastic demand Elastic demand

LO: Differentiate between elastic, inelastic, and unitary

Research and draw diagram of perfectly inelastic demand

What are the reasons of perfectly inelastic demand where

Research what is the reason for demand curve slopping

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