Lesson Plan on Concept of Demand and Supply: Market Equilibrium (Third Term SS1 Economics)
PROPOSED LESSON PLAN FOR WEEK XX ENDING XXth MONTH, 2021.
SCHOOL: (Put name of your school and the address here)
TERM: Third Term, 2020/2021 Academic Session
SUBJECT: Economics.
TOPIC: DEMAND AND SUPPLY
(MARKET EQUILIBRIUM)
CLASS: SS1
NUMBER IN CLASS:
AVERAGE AGE:
TIME TABLE FIT:
| DATE | DAY | PERIOD | TIME | DURATION | FORM |
| xx-xx-2021 | Monday | 5th | 10:50 -11:30 am | 40 minutes | SS1 |
| xx-xx-2021 | Tuesday | 4th | 10:10-10:50 am | 40 minutes | SS1 |
| xx-xx-2021 | Friday | 9th | 09:10-10:10 | 40 minutes | SS1 |
PREVIOUS KNOWLEDGE: The student has learnt about meaning of demand and supply.
MAIN AIM: to help the students understand the meaning of factors of production.
SUBSIDIARY AIMS: By the end of the lesson, the Students should be able to:
- Explain the market equilibrium,
- Explain what happens to demand and supply when the market price is lower or higher than the market equilibrium price,
- Differentiate between change in demand and change in quantity demanded, and
- List types of demand and supply.
PERSONAL AIM: to assist the students understand the concept of market equilibrium.
ASSUMPTION: the students are familiar with meaning of demand and supply.
ANTICIPATED PROBLEMS: the student may not be conversant with market equilibrium.
POSSIBLE SOLUTION: Teacher explains the meaning of market equilibrium.
TEACHING AIDS: comprehensive economics for senior secondary schools and economics dictionary by John Black.
INTERACTION PATTERN: interactive method.
STEP 1: MEANING OF MARKET EQUILIBRUIM: Market equilibrium, also known as the market clearing price, refers to a perfect balance in the market of supply and demand, i.e. when supply is equal to demand.
When the market is at equilibrium, the price of a product or service will remain the same, unless some external factor changes the level of supply or demand.
According to economic theory, in a market economy there is a single price which brings demand and supply into balance – the equilibrium price.
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STEP 2: Illustration of what happens to demand and supply when the market price is higher or lower than the market equilibrium
From the above diagram is obvious that increase in price from po to p2 lead to a decrease of quantity demanded from 20 to 10 , while supply increased from 20 to 30 at the same point thereby create an excess supply of 20 (30 – 10 = 20) when the price decreased from po to p1 quantity demanded increased from 20 to 30 thereby create an excess demand of 20 also (30-10 = 20) .further more point is equilibrium point , po is equilibrium price while Qo stands for equilibrium quantity.
STEP3: Change in Quantity Demanded
Definition of a Change in Quantity Demanded:
A Change in the Quantity Demanded is the change in the number of units a person or consumers are willing to purchase that results from a change in the price of that good or service.
Detailed Explanation:
The law of demand tells us that a change in the price will result in a change in the quantity demanded of a good or service. When sellers increase their price, consumers normally reduce the quantity they purchase. Conversely, when sellers have a sale it is to attract buyers and sell more. A change in the quantity demanded is illustrated by movement along the demand curve.
It is important to distinguish between a change in the quantity demanded and a change in demand. Many variables can change the demand for a product. These include: a change in income, a change in the price of related products, the number of buyers, future expectations, or a change in tastes. Let’s use an example of babysitting and theater tickets to illustrate the relationship and differences between a change in demand and a change in the quantity demanded by using the diagram below.
The Smith’s love the theater and are thrilled to learn the local theater recently dropped its price from $40 to $25 per ticket. The Smith’s demand curve shows us that they would increase the quantity of tickets they purchase from four to ten per season. This increase in the quantity demanded is illustrated by a movement along the demand curve from point A to point B. The Smiths have a three-year-old daughter and use Jane to babysit when they attend plays. Their demand for Jane’s services just increased as a result of the drop-in ticket prices. Theater tickets and babysitting are complements. Note that the demand for Jane’s babysitting has increased even though she has not changed her price. In fact, the demand for her services increased at all prices. This increase in demand is illustrated by a rightward shift in the demand curve for babysitting from Demand curve A to Demand Curve B.
The impact a price change will have on total revenues depends on the item’s price elasticity of demand. How severely is the change in the quantity demanded impacted by a change in the price? Revenues will decrease following an increase in the price if the product has an elastic demand. The added revenues generated per unit sold are less than the revenues lost from the drop in the quantity demanded. Conversely, revenues will increase following an increase in the price if the product has an inelastic demand, because the added revenues generated from each sale will be greater than the revenues lost from diminished sales.
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Click Here to Download Comprehensive and Detailed Lesson notes for Secondary school from JSS1 to SS3
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STEP4: TYPES OF DEMAND AND SUPPLY
TYPES OF DEMAND
1.competitive demand
2.derived demand
3.complementry or joint demand
4.composite demand
5.independent demand.
TYPES OF SUPPLY
1.complementry or joint supply
2.composite supply
3.longrun and short run supply
EVALUATION:
(i) explain market equilibrium,
- illustrate what happens to demand and supply when the market price is higher or lower than the market equilibrium
(iii)with a well labeled diagram differentiate between change in demand and change in quantity demanded.
SUMMARY: any price below the equilibrium price will lead to excess demand while any price fixed above equilibrium price will lead to excess supply, at point of interception of market demand curve and market supply curve, demand and supply are equal at that point
ASSIGNMENT
(1) with help of a well labeled diagram differentiate between change in demand and change in quantity demanded
(2) list factor(s) responsible for each of them
Teacher Evaluation: ________________________
Conclusion:
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