This four-lesson pack develops students’ understanding of demand and elasticity.

Lesson 21 introduces demand and explores the relationship between price and quantity demanded, including movements along the demand curve. Students then investigate the key factors that can influence demand, including substitutes and complementary goods, consumer incomes, tastes and preferences, advertising, seasonal factors and technological change. Real-business examples and quick ranking activities encourage students to consider why demand differs between markets.

Lesson 22 develops this understanding through Price Elasticity of Demand (PED). Students learn how to define, calculate and interpret PED, distinguish between price elastic and price inelastic demand and explore the factors affecting elasticity. The lesson then applies PED to business pricing and revenue decisions, culminating in an AQA-style 9-mark quantitative question based on ODEON, requiring students to calculate PED and use their result to make a supported judgement about a proposed price increase.

Lessons 23–24 focus on Income Elasticity of Demand (YED). Students calculate and interpret YED before distinguishing between normal, inferior, necessity and luxury goods. Engaging examples encourage students to consider how their own purchasing might change as income rises or falls, before applying YED to wider business decisions. Students explore how changing incomes and economic conditions can create winners and losers across different markets and evaluate how useful elasticity data is when forecasting demand and making business decisions.

Includes:

• Engaging starters, retrieval and recap activities
• Demand and movements along the demand curve
• Factors influencing consumer demand
• Substitutes and complementary goods
• Real-world business examples and application
• Price Elasticity of Demand (PED)
• PED calculations and interpretation
• Elastic vs inelastic demand
• Impact of PED on pricing and sales revenue
• Income Elasticity of Demand (YED)
• YED calculations and interpretation
• Normal, inferior, necessity and luxury goods
• Application of YED to changing consumer incomes
• Mini-whiteboard, ranking and discussion activities
• Quantitative skills and percentage-change practice
• AQA-style 9-mark calculation and evaluation practice
• Model answers and structured exam guidance
• Plenary and retrieval activities

Low-prep, calculation-rich and engaging, with a strong focus on real-business application and exam technique. Fully aligned with the new AQA A-Level Business specification.