Lesson Note on Concept of Demand and Supply: Meaning, Laws and Factors for SS 2

Class: Senior Secondary School 2 (SS2 / SSS2)
Term: First Term
Week: 3
Age: 16 years
Duration: 45 minutes
Subject: Economics
Curriculum Theme: Market Structure
Previous Lesson: Tools of Economic Analysis: Bar Chart and Chart Calculations.
Topic: Concept of Demand and Supply
Subject Matter: Meaning of demand, meaning of supply, laws of demand and supply, factors affecting demand and supply

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

• Define demand and supply.
• State the laws of demand and supply.
• Identify factors that affect demand and supply.

Affective Domain:

• Appreciate the importance of demand and supply in determining market prices.
• Value the role of the price system in resource allocation.

Psychomotor Domain:

• Construct demand and supply schedules.
• Plot demand and supply curves from given schedules.

Social Domain:

• Relate the concepts of demand and supply to real-world market situations.

Reference Materials

The following resources were used in planning this lesson:

• Senior Secondary Schools Education Curriculum
• State Unified Scheme of Work
• Essential Economics for Senior Secondary Schools by C.E. Ande
• https://www.economicshelp.org/micro-economic-essays/markets/demand-supply-lesson/
• https://www.investopedia.com/terms/l/law-of-demand.asp

Instructional Materials

The teacher will teach this lesson with the aid of:

• Graphs drawn on a whiteboard or chart
• Marker/Chalk
• Textbooks

Rationale for the Lesson

This lesson helps pupils understand how prices are determined in a market economy. Understanding demand and supply is important for comprehending economic decisions made by consumers and producers, and how resources are allocated in society.

Prerequisite/Previous Knowledge

Pupils have a basic understanding of what a market is and the concept of price.

Lesson Content/Board Summary

Concept of Demand and Supply

Meaning of Demand

Demand refers to the quantity of a commodity that consumers are willing and able to buy at a particular price, within a given period of time.

Demand Schedule: A table showing the relationship between the price of a commodity and the quantity demanded.

Demand Curve: A graphical representation of the demand schedule, showing the inverse relationship between price and quantity demanded. It slopes downwards from left to right.

Law of Demand

The law of demand states that, all other factors remaining constant (ceteris paribus), the higher the price of a commodity, the lower the quantity demanded, and the lower the price, the higher the quantity demanded.

Factors Affecting Demand

The following are factors that influence the quantity of a commodity demanded:

• Price of the commodity
• Price of related goods (substitutes and complements)
• Consumers’ income
• Consumers’ tastes and preferences
• Expectation of future price changes
• Population size
• Government policy (e.g., taxes, subsidies)

Meaning of Supply

Supply refers to the quantity of a commodity that producers are willing and able to offer for sale at a particular price, within a given period of time.

Supply Schedule: A table showing the relationship between the price of a commodity and the quantity supplied.

Supply Curve: A graphical representation of the supply schedule, showing the direct relationship between price and quantity supplied. It slopes upwards from left to right.

Law of Supply

The law of supply states that, all other factors remaining constant (ceteris paribus), the higher the price of a commodity, the higher the quantity supplied, and the lower the price, the lower the quantity supplied.

Factors Affecting Supply

The following are factors that influence the quantity of a commodity supplied:

• Price of the commodity
• Cost of production (e.g., wages, raw materials)
• Technology
• Government policy (e.g., taxes, subsidies)
• Price of other goods
• Expectation of future price changes
• Natural factors (e.g., weather for agricultural products)

Plotting Demand and Supply Curves

To plot demand and supply curves:

• Step 1: Draw a graph with Quantity on the horizontal (X) axis and Price on the vertical (Y) axis.
• Step 2: Plot the points from the demand schedule (Price, Quantity Demanded).
• Step 3: Connect the plotted points to form the downward-sloping demand curve (DD).
• Step 4: Plot the points from the supply schedule (Price, Quantity Supplied).
• Step 5: Connect the plotted points to form the upward-sloping supply curve (SS).
• Step 6: Label both axes and the curves clearly.

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher greets the pupils and asks them to recall what they understand by ‘market’ and ‘price’. The teacher then introduces the topic by explaining that demand and supply are fundamental to understanding how markets work.
Pupils’ Activity: Pupils respond to the teacher’s questions and listen attentively to the introduction.
Learning Point: Pupils recall previous knowledge and are introduced to the lesson’s main topic.

Step 2: Meaning of Demand and Law of Demand

Time: 10 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher defines demand, explains the concept of a demand schedule, and states the law of demand. The teacher uses the example schedule from the board summary to illustrate.
Pupils’ Activity: Pupils listen, take notes, and ask questions for clarification.
Learning Point: Pupils understand the definition and law of demand.

Step 3: Factors Affecting Demand

Time: 5 minutes
Teaching Skill: Listing/Explanation
Teacher’s Activity: The teacher lists and briefly explains the various factors that can affect the demand for a commodity.
Pupils’ Activity: Pupils write down the factors and listen to the explanations.
Learning Point: Pupils identify the determinants of demand.

Step 4: Meaning of Supply and Law of Supply

Time: 10 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher defines supply, explains the concept of a supply schedule, and states the law of supply. The teacher uses the example schedule from the board summary to illustrate.
Pupils’ Activity: Pupils listen, take notes, and ask questions for clarification.
Learning Point: Pupils understand the definition and law of supply.

Step 5: Factors Affecting Supply

Time: 5 minutes
Teaching Skill: Listing/Explanation
Teacher’s Activity: The teacher lists and briefly explains the various factors that can affect the supply of a commodity.
Pupils’ Activity: Pupils write down the factors and listen to the explanations.
Learning Point: Pupils identify the determinants of supply.

Step 6: Plotting Demand and Supply Curves

Time: 5 minutes
Teaching Skill: Demonstration
Teacher’s Activity: The teacher guides the pupils on how to plot demand and supply curves using the schedules provided in the board summary, emphasizing proper labeling of axes and curves.
Pupils’ Activity: Pupils observe the demonstration and may attempt to sketch the curves in their notebooks.
Learning Point: Pupils learn how to graphically represent demand and supply.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

1. Define demand and supply.
2. State the law of demand.
3. Mention three factors that affect the demand for a commodity.
4. State the law of supply.
5. Mention three factors that affect the supply of a commodity.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 5 minutes
Teaching Skill: Summarization
Teacher’s Activity: The teacher summarizes the key points of the lesson, reiterating the definitions, laws, and factors of demand and supply. The teacher assigns homework for pupils to draw and label demand and supply curves using new hypothetical schedules.
Pupils’ Activity: Pupils listen to the summary and copy down the homework.
Learning Point: Pupils consolidate their understanding and apply learned concepts.

Lesson Keywords

• Demand – The quantity of a good consumers are willing and able to buy at a given price.
• Supply – The quantity of a good producers are willing and able to sell at a given price.
• Law of Demand – Inverse relationship between price and quantity demanded.
• Law of Supply – Direct relationship between price and quantity supplied.
• Demand Curve – Downward-sloping graph showing price and quantity demanded.
• Supply Curve – Upward-sloping graph showing price and quantity supplied.
• Ceteris Paribus – All other factors remaining constant.

Differentiation

For pupils who grasp the concepts quickly, the teacher can provide additional scenarios to analyze or ask them to explain the concept of market equilibrium. For pupils needing more support, the teacher can provide simpler examples and more guided practice in identifying factors and plotting points.

Note for teachers using this lesson plan

Ensure pupils understand the ‘ceteris paribus’ assumption when explaining the laws of demand and supply. Emphasize the difference between a change in quantity demanded/supplied (movement along the curve) and a change in demand/supply (shift of the curve), although the latter may be covered in subsequent lessons. Real-world examples will enhance understanding.