Class: Senior Secondary School 2 (SS2 / SSS2)
Term: Second Term
Week: 3
Age: 16 years
Duration: 45 minutes
Subject: Economics
Curriculum Theme: Market Structure and Price Theory
Previous Lesson: Utility Theory: Meaning, Marginal Utility and Diminishing Utility.
Topic: PRICE DETERMINATION
Subject Matter: Determination of equilibrium price and quantity, effects of changes in demand and supply, types of demand and supply (joint demand, joint supply, and others).

Specific Objectives

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

Cognitive Domain:

Define equilibrium price and quantity.
Explain how equilibrium price and quantity are determined.
Identify the effects of changes in demand and supply on equilibrium.
List and explain different types of demand and supply.

Affective Domain:

Appreciate the importance of price determination in various markets.
Show willingness to analyze real-world market situations.

Psychomotor Domain:

Draw simple demand and supply curves to illustrate equilibrium.
Graphically demonstrate the effects of shifts in demand and supply on equilibrium.
Provide relevant examples for different types of demand and supply.

Participate actively in discussions about market dynamics.
Collaborate with peers to analyze given market scenarios.

Reference Materials

The following resources were used in planning this lesson:

Senior Secondary Schools Education Curriculum
State Unified Scheme of Work
Adeyemi, K. (2018). Comprehensive Economics for Senior Secondary Schools. Lagos: A. Johnson Publishers.
https://nigerianinfopedia.com.ng/types-of-demand-in-economics/
https://www.economicshelp.org/micro-economic-essays/equilibrium-price-quantity/
https://study.com/academy/lesson/types-of-supply-in-economics.html

Instructional Materials

The teacher will teach this lesson with the aid of:

Charts showing demand and supply curves
Diagrams illustrating shifts in demand and supply
Illustrations of complementary goods (bread and butter, petrol and car)
Whiteboard and markers

Rationale for the Lesson

This lesson helps pupils understand how prices are set in markets and why they change. It enables them to analyze basic market situations and predict the impact of various economic events on prices and quantities of goods and services.

Prerequisite/Previous Knowledge

Pupils should have prior knowledge of the basic concepts of demand, supply, and market.

Lesson Content/Board Summary

PRICE DETERMINATION

Determination of Equilibrium Price and Quantity

Demand refers to the quantity of a commodity that consumers are willing and able to buy at a given price and time.
Supply refers to the quantity of a commodity that producers are willing and able to offer for sale at a given price and time.
Equilibrium price is the price at which the quantity demanded equals the quantity supplied in the market.
Equilibrium quantity is the quantity demanded and supplied at the equilibrium price.

Equilibrium is determined at the intersection point of the demand and supply curves on a graph. At this point, there is no tendency for price to change as the market is cleared.

Effects of Changes in Demand and Supply on Equilibrium

Changes in demand or supply cause shifts in the respective curves, leading to new equilibrium prices and quantities.

Increase in Demand (Demand Curve shifts Right): Leads to a higher equilibrium price and a higher equilibrium quantity.
Decrease in Demand (Demand Curve shifts Left): Leads to a lower equilibrium price and a lower equilibrium quantity.
Increase in Supply (Supply Curve shifts Right): Leads to a lower equilibrium price and a higher equilibrium quantity.
Decrease in Supply (Supply Curve shifts Left): Leads to a higher equilibrium price and a lower equilibrium quantity.

These effects can be illustrated graphically by shifting the demand or supply curve and observing the new intersection point.

Types of Demand

The following are different types of demand:

Joint/Complementary Demand: Occurs when two or more commodities are demanded together to satisfy a single want.
- Example: Car and petrol, bread and butter.
Competitive Demand: Occurs when two or more commodities serve the same purpose and can be substituted for each other.
- Example: Butter and margarine, tea and coffee.
Derived Demand: Occurs when the demand for a commodity is not for its direct satisfaction but because it is needed to produce another commodity.
- Example: Demand for flour is derived from the demand for bread; demand for labour is derived from the demand for goods/services.
Composite Demand: Occurs when a commodity can be used for two or more different purposes.
- Example: Demand for crude oil (used for petrol, kerosene, diesel, plastics).

Types of Supply

The following are different types of supply:

Joint Supply: Occurs when two or more commodities are produced together from a single production process.
- Example: Crude oil and natural gas, beef and hide.
Competitive Supply: Occurs when two or more commodities are produced using the same factors of production, competing for the available resources.
- Example: Land used for maize production cannot be used for yam production simultaneously.
Composite Supply: Occurs when a commodity is supplied from two or more different sources.
- Example: Milk can be supplied from cows, goats, or produced synthetically.

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 reviews the previous lesson on demand and supply, asking questions to ascertain their understanding.
Pupils’ Activity: Pupils respond to the teacher’s questions and recall previous knowledge.
Learning Point: Pupils connect previous learning to the new topic.

Step 2: Explanation of Equilibrium Price and Quantity

Time: 10 minutes
Teaching Skill: Explanation/Demonstration
Teacher’s Activity: The teacher defines equilibrium price and quantity, using a demand and supply schedule or graph to illustrate how they are determined at the point where quantity demanded equals quantity supplied.
Pupils’ Activity: Pupils listen attentively, ask questions, and observe the graphical representation.
Learning Point: Pupils understand the concept and determination of market equilibrium.

Step 3: Pupils’ Activity on Equilibrium

Time: 5 minutes
Teaching Skill: Practical Application
Teacher’s Activity: The teacher provides a simple demand and supply schedule and asks pupils to identify the equilibrium price and quantity.
Pupils’ Activity: Pupils work individually or in pairs to find the equilibrium from the given schedule.
Learning Point: Pupils practice identifying equilibrium in a practical scenario.

Step 4: Effects of Changes in Demand

Time: 8 minutes
Teaching Skill: Illustration/Explanation
Teacher’s Activity: The teacher explains and demonstrates, using graphs, how an increase or decrease in demand affects the equilibrium price and quantity, citing local examples like increased demand for face masks during a pandemic.
Pupils’ Activity: Pupils observe the graphs, ask clarifying questions, and relate the concepts to real-life situations.
Learning Point: Pupils understand how shifts in demand impact market equilibrium.

Step 5: Effects of Changes in Supply

Time: 8 minutes
Teaching Skill: Illustration/Explanation
Teacher’s Activity: The teacher explains and demonstrates, using graphs, how an increase or decrease in supply affects the equilibrium price and quantity, citing examples like increased supply of agricultural produce during harvest.
Pupils’ Activity: Pupils follow the graphical illustrations and provide their own examples.
Learning Point: Pupils understand how shifts in supply impact market equilibrium.

Step 6: Types of Demand and Supply

Time: 5 minutes
Teaching Skill: Explanation/Examples
Teacher’s Activity: The teacher explains and illustrates different types of demand (joint, competitive, derived, composite) and supply (joint, competitive, composite) with relevant examples and simple diagrams where applicable.
Pupils’ Activity: Pupils listen, take notes, and provide additional examples for each type.
Learning Point: Pupils identify and differentiate between various types 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 equilibrium price and equilibrium quantity.
How is equilibrium price and quantity determined in a market?
Explain the effect of an increase in demand on equilibrium price and quantity.
List and explain two types of demand with examples.
Mention two types of supply with examples.

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/Assignment
Teacher’s Activity: The teacher summarizes the key points of the lesson and gives homework: “Draw diagrams to show the effects of a decrease in supply on equilibrium price and quantity.”
Pupils’ Activity: Pupils copy the homework and prepare for the next lesson.
Learning Point: Pupils consolidate their understanding and prepare for further study.

Lesson Keywords

Equilibrium Price – The price where quantity demanded equals quantity supplied.
Equilibrium Quantity – The quantity demanded and supplied at the equilibrium price.
Joint Demand – When goods are demanded together (e.g., car and petrol).
Joint Supply – When goods are produced together (e.g., beef and hide).
Derived Demand – Demand for a good used in producing another good.
Competitive Demand – Demand for substitute goods.
Competitive Supply – Goods that compete for the same resources.
Composite Demand – Demand for a good with multiple uses.
Composite Supply – Goods supplied from multiple sources.

Differentiation

For struggling learners, the teacher will provide simplified graphs and work through more examples step-by-step. Advanced learners can be challenged to analyze more complex scenarios, such as simultaneous shifts in both demand and supply, and discuss their real-world implications.

Note for teachers using this lesson plan

Ensure that pupils actively participate in drawing and interpreting graphs. Use local market examples to make the concepts more relatable. Encourage critical thinking about how various factors can influence market prices in their communities.