Republic of the Philippines

Department Of Education
Region III
DR. VICTORIA B. ROMAN MEMORIAL HIGH SCHOOL
Pantingan, Pilar, Bataan

Semi Detailed Lesson Plan in

School: DR. VICTORIA B. ROMAN MEMORIAL HIGH Grade Level: 11 - ABM
SCHOOL
Teacher: CHENEE ROSE R. CANARIA Learning APPLIED
Detailed Area: ECONOMICS
Lesson Plan
Teaching MONDAY (7:30 9:30) Quarter: 2ND QUARTER
MELC
Dates and WEDNESDAY (7:30 9:30)
BASED
Time:

I- Learning Objective
The learners should:
1. Define elasticity;
2. Compute for the demand elasticity and supply elasticity; and
3. Analyze the implication of elasticity in price determination.

II- Content

A. Subject Matter: Applied Economics - Market Price

B. References: Culminating Activity, Module
C. Learning Materials: Laptop, Power Point Presentation, Image, TV

III- Procedure

A. Routine Activity
1. Prayer
2. Greetings
3. Checking of Attendance

B. Review
 What was our lesson yesterday?
 What is the law of demand and supply?
 What is the main determinant of the quantity demanded and quantity supplied?

C. Motivation
What if the price of the products/services listed in column 1 increase its price, what will you do? Let us identify
your responses. Based on what is listed in the column 1, write what is your decision in the column 2 and in
column 3 briefly explain the reason in making such decision. Your decision could be:
1. Ikaw pa rin (if you still choose to buy or avail the product/service)
2. Buti pa siya. (if you choose to buy another product or an alternative)
3. Sige na nga. (if you have no choice but to buy the product)
4. Huwag na lang. (if you decide not to buy the product and not to find alternative)
 YOUR REASON FOR YOUR
SITUATIONS
RESPONSE/DECISION DECISION
1. Favorite milk tea increases its price by ₱10.00
2. Favorite load promo package for 7 days reduces its
validity to 5 days at same price
3. A variety of rice increases by ₱5.00 Per kilo
4. Mother’s maintenance medicine increases its price
by 10 %
5. Increase in price of your favorite t-shirt brand

D. Discussion
When we were in lower grade level, we encountered the word “elastic, usually in our science subject. We define it as
being flexible or having the ability to be stretched but can go back to its original shape or size like a rubber band.

In economics, the terms elasticity is used to define the change in behavior of the sellers or buyers because of the
change in price and/or other determinants of supply and demand. It measures how the sellers or buyers respond to the
changes in determinants mainly the price.

 Elasticity of Demand and Supply

 The degree of elasticity of different products vary for several reasons. For the customers and suppliers, the
common determinant of the quantity demanded and supplied is the price.
 During the discussion of the law of demand and the law of supply, it was discussed that as the price increase
the quantity demanded by the customers decrease and quantity supplied by the sellers increases. Do you think
what is stated in the law of demand and supply always applicable? If it is applicable, is the change in quantity
demanded for several products still the same? Does it mean that if the price increase by 1 % the demand will
decrease by 1 % and the supply increases by 1 % also? To answer these questions, it is important to
understand the reactions of customers and sellers to the change in price of different products. The reactions of
the customers vary and so with the elasticity. The higher the change in quantity demanded compared to the
change in determinants the more elastic is the product.

 Price Elasticity of Demand and Supply

 Price Elasticity of Demand
Price elasticity of demand measures the change in demand in response to the change in price. For example,
the price of pork increases by 5 % the price elasticity will be determined by identifying the percentage of
decrease or increase in demand due to the change in price.
 Types of Elasticity
A. Elastic - The percentage change in quantity demanded is greater than the percentage change in price. It has more
than 1 elasticity coefficient. It means that if the price will increase there is a greater possibility that the consumer
will not buy the product or may decrease the quantity of the product to buy.
B. Inelastic - The percentage change in quantity demanded is lesser than the percentage change in price. It has less
than 1 elasticity coefficient. It means that the decision of the consumer to buy the product is not that affected by
the increase or decrease in price. The seller cannot assume that the consumer will buy more if they will decrease
the price since the change in quantity demanded is only minimal.
C. Unitary - The percentage change in price is equal to the percentage change in quantity demanded. The elasticity
coefficient is 1. It means that if the price increase by 1 % the demand will decrease by 1 % also and vice versa.
D. Perfectly elastic - When at the same price, the change of demand is infinite. It means that a small change in price
may cause a huge change in demand.
E. Perfectly inelastic - When there is no change in demand despite of the changes in price. Elasticity coefficient is
zero. It means that the demand is not affected by price at all. The demand will still be the same even if there is an
increase or decrease in price.
 Considering the two examples above let us interpret the elasticity coefficient that we derive. In example 1, the
price elasticity coefficient is -0.3. It is inelastic, which means that for every 1 % change in price there will be 0.3
% change in demand. The change in price cause a minimal change in demand. In example 2. The price elasticity
coefficient is 0. It is perfectly inelastic. The change in price does not affect the demand. In interpreting the price
elasticity coefficient, we ignore the negative sign. It is negative because the price and demand is inversely related.
E. Generalization
The teacher will ask these following questions:
 Question 1: If you are the seller will you increase the price of your product instantly if it is price elastic? Explain
you answer briefly.
 Question 2: What if the product is price inelastic, how will this affect your decision in setting price?
 Question 3: Is elasticity important in the analysis of the market? Why?

F. Application
Given the demand schedule below, determine the elasticity in the different situations. Show your solution: (3
points each – 1 point for the solution, 1 point for the elasticity coefficient and 1 point for the elasticity)

Situation Price Quantity

Demanded
I 100 350
II 125 325
III 140 305
IV 160 270
V 165 250
VI 180 220
VII 190 200

1. Situation I and II
2. Situation II and III
3. Situation III and IV
4. Situation V and VI
5. Situation VI and VII

Key Answer:

G. Evaluation
Complete the sentences in column A. Choose your answer from the choices given in
column B for each number and write the letter of your answer on the space provided
I learned that:

1. the consumers may respond differently to the change in price of a a. Income elasticity
product and their response is measure through __________________. b. Price elasticity
c. Cross elasticity

2. the degree of change in demand for a product due to the change in price a. Income elasticity
of its alternative or complementary is called __________________. b. Price elasticity
c. Cross elasticity

3. the demand curve is steeper than normal if the elasticity type is a. Inelastic
__________________. b. Elastic
c. Unitary

4. a straight horizontal line represents a __________________demand a. Perfectly inelastic

curve, while a straight vertical line represent a (5) b. Perfectly elastic
__________________demand curve. c. Unitary

6. an elasticity coefficient of 1 means __________________. a. Perfectly elastic

b. Unitary
c. Elastic

7. an elasticity coefficient of less than 1 means __________________. a. Elastic

b. Unitary
c. Inelastic

8. an elasticity coefficient of more than 1 means __________________. a. Unitary

b. Inelastic
c. Elastic

9. if the elasticity coefficient is zero, it means __________________. a. Perfectly inelastic

b. Perfectly elastic
c. Unitary

10. if the elasticity coefficient is immeasurable, it means a. Perfectly inelastic

__________________. b. Perfectly elastic
c. Unitary

11. if the percentage of change in quantity supplied is higher than the a. Inelastic
percentage of change in price, the price elasticity of supply is b. Elastic
__________________. c. Unitary

12. if the consumer is not price sensitive, the elasticity of demand is a. Unitary
__________________. b. Elastic
c. Inelastic

13. the seller can increase its price and can assure that the consumer will a. Elastic
continuously buy their product if the price elasticity of demand for the b. Inelastic
product is __________________. c. Perfectly elastic

14. the more elastic the demand is, the __________________will be the a. Less
 increase in price. b. More
c. Greater

15. the less elastic the demand is, the __________________ the increase in a. Less
quantity sold even if the price decreases. b. More
c. Lesser

Key Answer:
1. B 9. B
2. C 10. B
3. B 11. C
4. A 12. B
5. B 13. C
6. C 14. C
7. D 15. D
8. B

IV- Assignment
Given the demand schedule set A and B, make a graph to show the demand curve. Make separate graph for
set A and B. For each set, describe the graph briefly and determine the elasticity of the product based on the
graph you made. (5 points per set)

 Set A

Price Quantity
10 25
12 25
14 25
16 25
18 25

Your graph and answer for Set A

 Set B

Price Quantity
10 30
11 25
12 20
13 18
15 15
 Your graph and answer for Set B

Key Answer:

Prepared by: Checked by:

Chenee Rose R. Canaria Jesusa D. Pizarro
Teacher I Head Teacher III