Class: Senior Secondary School 2 (SS2 / SSS2)
Term: 1st Term
Week: 4
Age: 16 years
Duration: 45 minutes
Subject: Economics
Curriculum Theme: Market Dynamics
Previous Lesson: Concept of Demand and Supply: Meaning, Laws and Factors.
Topic: Concept of Demand and Supply
Subject Matter: Factors that cause shift in demand and supply curves, factors causing movement along demand and supply curves, types of demand and supply (with curves).

Specific Objectives

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

Cognitive Domain:

Define demand and supply.
Differentiate between a shift in and a movement along the demand and supply curves.
Identify factors that cause shifts and movements in demand and supply curves.
List various types of demand and supply.

Affective Domain:

Appreciate the importance of price in influencing demand and supply.
Understand how market forces interact.

Psychomotor Domain:

Sketch simple demand and supply curves.
Illustrate shifts and movements on demand and supply curves.

Discuss real-world examples of changes in demand and supply.
Collaborate in analyzing market scenarios.

Reference Materials

The following resources were used in planning this lesson:

Senior Secondary Schools Education Curriculum
State Unified Scheme of Work
Adeyemi, S. O. (2018). Economics for Senior Secondary Schools. Ibadan: University Press PLC.

Instructional Materials

The teacher will teach this lesson with the aid of:

Whiteboard and markers
Charts illustrating demand and supply curves, shifts, and movements
Graphs showing different types of demand and supply.

Rationale for the Lesson

This lesson helps pupils understand the fundamental concepts of demand and supply, which are essential for analyzing how prices are determined in a market economy. It enables pupils to comprehend the forces that drive buying and selling decisions in everyday life.

Prerequisite/Previous Knowledge

Pupils have a basic understanding of goods, services, and the concept of a market.

Lesson Content/Board Summary

Concept of Demand and Supply

Definition of Demand

Demand refers to the quantity of a commodity that consumers are willing and able to buy at various prices over a given period.

Law of Demand

The law of demand states that, all other factors being 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. This shows an inverse relationship between price and quantity demanded.

Demand Curve

The demand curve is a graphical representation of the relationship between the price of a commodity and the quantity demanded. It typically slopes downwards from left to right, reflecting the law of demand.

Movement Along the Demand Curve (Change in Quantity Demanded)

A movement along the demand curve occurs when there is a change in the quantity demanded due solely to a change in the price of the commodity itself, with all other factors remaining constant. This is shown as a movement from one point to another on the same demand curve.

Factors Causing Movement Along the Demand Curve

A change in the price of the commodity itself.

Shift in the Demand Curve (Change in Demand)

A shift in the demand curve occurs when there is a change in the quantity demanded at every given price, caused by factors other than the price of the commodity itself. A shift to the right indicates an increase in demand, while a shift to the left indicates a decrease in demand.

Factors Causing Shift in the Demand Curve

The following factors can cause a shift in the demand curve:

Income of Consumers: For normal goods, an increase in income leads to an increase in demand. For inferior goods, an increase in income leads to a decrease in demand.
Price of Related Goods:
- Substitutes: If the price of a substitute good increases, the demand for the original good increases.
- Complements: If the price of a complementary good increases, the demand for the original good decreases.
Tastes and Preferences: A change in consumer tastes or preferences towards a good will increase its demand.
Expectations of Future Prices: If consumers expect prices to rise in the future, current demand may increase.
Population Size: An increase in population generally leads to an increase in overall demand.
Government Policy (e.g., taxes or subsidies): Taxes can reduce demand, while subsidies can increase it.

Definition of Supply

Supply refers to the quantity of a commodity that producers are willing and able to offer for sale at various prices over a given period.

Law of Supply

The law of supply states that, all other factors being 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. This shows a direct relationship between price and quantity supplied.

Supply Curve

The supply curve is a graphical representation of the relationship between the price of a commodity and the quantity supplied. It typically slopes upwards from left to right, reflecting the law of supply.

Movement Along the Supply Curve (Change in Quantity Supplied)

A movement along the supply curve occurs when there is a change in the quantity supplied due solely to a change in the price of the commodity itself, with all other factors remaining constant. This is shown as a movement from one point to another on the same supply curve.

Factors Causing Movement Along the Supply Curve

A change in the price of the commodity itself.

Shift in the Supply Curve (Change in Supply)

A shift in the supply curve occurs when there is a change in the quantity supplied at every given price, caused by factors other than the price of the commodity itself. A shift to the right indicates an increase in supply, while a shift to the left indicates a decrease in supply.

Factors Causing Shift in the Supply Curve

The following factors can cause a shift in the supply curve:

Cost of Production: An increase in production costs (e.g., wages, raw materials) will decrease supply.
Technology: Improvements in technology generally lead to an increase in supply.
Price of Other Goods: If the price of an alternative good that can be produced with the same resources increases, the supply of the original good may decrease.
Government Policy (e.g., taxes or subsidies): Taxes on production can decrease supply, while subsidies can increase it.
Number of Producers: An increase in the number of firms in the market will increase overall supply.
Expectations of Future Prices: If producers expect prices to fall in the future, current supply may increase to sell off stock.
Natural Factors: Favorable weather conditions can increase agricultural supply, while natural disasters can decrease it.

Types of Demand

The following are types of demand:

Joint Demand: When two or more commodities are demanded together to satisfy a single want (e.g., car and petrol).
Composite Demand: When a commodity is demanded for two or more purposes (e.g., crude oil for fuel, plastics, lubricants).
Derived Demand: When the demand for a commodity is a direct consequence of the demand for another commodity (e.g., demand for cement is derived from the demand for housing).
Competitive Demand: When two or more commodities serve as substitutes for each other (e.g., butter and margarine).

Types of Supply

The following are types of supply:

Joint Supply: When two or more commodities are produced together from a single production process (e.g., crude oil and natural gas, beef and hides).
Composite Supply: When a commodity can be supplied from two or more sources (e.g., electricity from hydro, thermal, solar).
Competitive Supply: When two or more commodities compete for the same factors of production (e.g., a farmer can grow maize or beans on the same land).

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 name some items they or their parents buy regularly and why they buy them. The teacher then asks what influences how much they buy.
Pupils’ Activity: Pupils respond by naming items and discussing factors like price, need, and income.
Learning Point: Pupils are introduced to the basic idea of buying habits and factors influencing purchases.

Step 2: Explanation of Demand

Time: 7 minutes
Teaching Skill: Explanation/Demonstration
Teacher’s Activity: The teacher defines demand, explains the law of demand, and illustrates a simple demand curve on the board, emphasizing its downward slope.
Pupils’ Activity: Pupils listen, take notes, and ask questions for clarification.
Learning Point: Pupils understand the definition and basic graphical representation of demand.

Step 3: Movement vs. Shift in Demand

Time: 7 minutes
Teaching Skill: Explanation/Illustration
Teacher’s Activity: The teacher explains the difference between a movement along the demand curve (due to price change) and a shift in the demand curve (due to non-price factors). The teacher lists and explains factors causing shifts in demand, illustrating with graphs.
Pupils’ Activity: Pupils observe the illustrations, note the factors, and differentiate between movement and shift.
Learning Point: Pupils identify factors causing changes in quantity demanded versus changes in demand.

Step 4: Explanation of Supply

Time: 7 minutes
Teaching Skill: Explanation/Demonstration
Teacher’s Activity: The teacher defines supply, explains the law of supply, and illustrates a simple supply curve on the board, emphasizing its upward slope.
Pupils’ Activity: Pupils listen, take notes, and understand the definition and basic graphical representation of supply.
Learning Point: Pupils grasp the definition and basic graphical representation of supply.

Step 5: Movement vs. Shift in Supply

Time: 7 minutes
Teaching Skill: Explanation/Illustration
Teacher’s Activity: The teacher explains the difference between a movement along the supply curve (due to price change) and a shift in the supply curve (due to non-price factors). The teacher lists and explains factors causing shifts in supply, illustrating with graphs.
Pupils’ Activity: Pupils observe the illustrations, note the factors, and differentiate between movement and shift for supply.
Learning Point: Pupils identify factors causing changes in quantity supplied versus changes in supply.

Step 6: Types of Demand and Supply

Time: 5 minutes
Teaching Skill: Elaboration
Teacher’s Activity: The teacher explains and provides examples for different types of demand (joint, composite, derived, competitive) and supply (joint, composite, competitive).
Pupils’ Activity: Pupils listen, take notes, and ask questions about the various types.
Learning Point: Pupils learn about the different classifications of 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:

Define demand and supply.
State the law of demand and the law of supply.
Distinguish between a movement along the demand curve and a shift in the demand curve.
Mention three factors that can cause a shift in the supply curve.
List two types of demand and two types of supply.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 2 minutes
Teaching Skill: Summarization
Teacher’s Activity: The teacher summarizes the key points of the lesson, emphasizing the importance of demand and supply in determining market prices. The teacher assigns homework: “Draw and label a demand curve showing an increase in demand and a supply curve showing a decrease in supply.”
Pupils’ Activity: Pupils listen to the summary and copy the homework assignment.
Learning Point: Pupils reinforce their understanding and prepare for further study.

Lesson Keywords

Demand – The quantity of a good consumers are willing and able to buy at various prices.
Supply – The quantity of a good producers are willing and able to sell at various prices.
Quantity Demanded – The amount of a good consumers are willing and able to buy at a specific price.
Quantity Supplied – The amount of a good producers are willing and able to sell at a specific price.
Shift – A change in demand or supply caused by non-price factors.
Movement – A change in quantity demanded or supplied caused by a change in the good’s own price.
Joint Demand – Demand for two or more goods used together.
Derived Demand – Demand for a good arising from the demand for another good.
Composite Demand – Demand for a good with multiple uses.
Competitive Demand – Demand for goods that are substitutes.
Joint Supply – Supply of two or more goods produced together.
Composite Supply – Supply of a good from multiple sources.
Competitive Supply – Supply of goods that use the same resources.

Differentiation

For pupils who grasp concepts quickly, the teacher will encourage them to research real-world examples of extreme shifts in demand or supply (e.g., due to pandemics, technological breakthroughs). For pupils needing more support, the teacher will provide simplified diagrams and additional one-on-one explanations, focusing initially on just the definitions and basic curves.

Note for teachers using this lesson plan

Ensure that pupils clearly understand the distinction between a change in quantity demanded/supplied (movement along the curve) and a change in demand/supply (shift of the curve). Use clear, large diagrams on the board and encourage pupils to practice drawing these curves. Real-world examples will help solidify their understanding.