Dynamic Pricing: Efficient or Unethical?

This ESL worksheet explores the economics of dynamic pricing, helping students understand how prices change in response to demand, time, and market conditions. It introduces essential business and consumer-related vocabulary. It is suitable for B2 level learners.

This is a current and relatable topic as dynamic pricing systems are increasingly used by companies such as airlines, hotels, online retailers. With the growing use of algorithms and AI-driven pricing tools, students are encouraged to reflect on how pricing strategies affect everyday life and consumer fairness in modern digital markets.

Speaking: Lead-in and Discussion

The lesson begins with guided discussion questions about personal shopping habits, price comparison behaviour, and reactions to sudden price changes. Students consider real-life scenarios involving fluctuating prices for products and services and discuss whether they prioritise cost, convenience, or necessity when making purchasing decisions. Students then discuss the economics of pricing – what factors are taken into account when setting the price of a product or service, and what factors can make the price go up or down.

Vocabulary: Dynamic Pricing and Market Behaviour

Students learn and practise key vocabulary related to pricing strategies and consumer economics, including terms such as dynamic pricing, demand surge, price gouging, benchmark, adjust prices, rush buying and come under scrutiny. They match words to definitions and use them in context to describe how businesses respond to changes in demand and cost.

Listening: Dynamic Pricing in the Real World

Students watch a video titled “Dynamic pricing: economic efficiency, or subtle price gouging?” and complete comprehension tasks based on real-world examples, including airline pricing models, supermarket digital price tags, and online retail algorithms. They answer detailed questions about statistics, industry practices, and the impact of surge pricing on consumers and businesses.

Speaking

Students reflect on whether dynamic pricing is fair or exploitative, discuss the boundaries between market efficiency and price manipulation, and evaluate which goods and services should or should not use surge pricing. They also consider how technology is changing pricing strategies in everyday life and whether dynamic pricing will become more widespread in the future. In the final speaking tasks, students discuss strategies to beat dynamic pricing and get the best deals possible for various products.

For more speaking practice, you can use the printable conversation cards.