Lesson Plan: Understanding the Theory of Demand
Subject: Economics
Class: Lower Sixth Arts
Duration: 55 minutes
Topic: The Theory of Demand
Lesson Objectives
By the end of the lesson, learners will be able to:
Define demand and explain its significance in economics.
Understand the law of demand and its graphical representation.
Identify and explain the factors that influence demand.
Analyse how changes in demand affect price and quantity.
Materials Needed
Whiteboard and markers (chalk and blackboard)
Projector and slides (optional)
Graph paper or graphing tools
Hand-outs with examples and practice problems
Real-world examples (e.g., product advertisements, news articles)
Lesson Outline
1. Introduction (5 minutes)
Engage: Start with a question: "Why do you think people buy more of a
product when its price drops?"
Explain: Introduce the concept of demand as the quantity of a good or
service that consumers are willing and able to purchase at various prices.
Objective Sharing: Share the lesson objectives with the class.
2. The Law of Demand (15 minutes)
Definition: Explain the law of demand—as the price of a good decreases,
the quantity demanded increases, and vice versa, assuming all other factors
remain constant (ceteris paribus).
Graphical Representation:
o Draw a demand curve on the board, labelling the axes (Price on the
vertical axis, Quantity on the horizontal axis).
o Discuss the downward slope of the demand curve.
Example: Use a real-world example, such as the demand for smartphones,
to illustrate the law of demand.
3. Factors Influencing Demand (15 minutes)
Discussion: Introduce the non-price determinants of demand:
M. R. Nforgang
MSc. Economics
1. Income: Normal vs. inferior goods.
2. Tastes and Preferences: Trends, advertising, and cultural factors.
3. Prices of Related Goods: Substitutes and complements.
4. Expectations: Future price changes or income changes.
5. Population: Changes in the number of consumers.
Activity: Divide learners into small groups and assign each group a factor.
Have them brainstorm examples and present to the class.
4. Shifts in the Demand Curve vs. Movement Along the Curve (10 minutes)
Explanation:
o Movement Along the Curve: Caused by a change in price.
o Shift of the Curve: Caused by changes in non-price determinants.
Visual Aid: Use the board to show examples of shifts (rightward for increase
in demand, leftward for decrease).
Practice: Provide a scenario (e.g., a new study shows coffee is healthier)
and ask learners to determine if it causes a shift or movement.
5. Application and Practice (5 minutes)
Hand-out: Distribute a worksheet with scenarios and graphs.
o Example: "If the price of ice cream decreases, what happens to the
quantity demanded?"
o Example: "If people expect the price of fuel to rise next month, how
does this affect the demand for fuel today?"
Class Discussion: Review answers as a group and address any
misconceptions.
6. Conclusion and Recap (5 minutes)
Summarize: Recap the key points—law of demand, factors influencing
demand, and shifts vs. movements.
Exit Ticket: Ask students to write one question they still have about demand
or one real-world example of demand they observed recently.
Assessment
Participation in group discussions and activities.
Accuracy and understanding demonstrated in the hand-out and exit ticket.
Homework
Research a product (e.g., cars, fast food) and write a short paragraph explaining how
one factor (e.g., income, preferences) has influenced its demand in recent years.
M. R. Nforgang
MSc. Economics
