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Subject: Economics
Semester: 2
Period: 4
Week: 20
School Name:
Teacher’s Name:
Subject: Economics
Grade Level: Grade 10
Week & Period: Week 20, Period IV
Date:
Topic: The Theory of Consumer Behavior
Sub-topic: The Relationship Between Total Utility and Marginal Utility
Learning Objectives:
By the end of the lesson, learners should be able to:
- Define and explain total utility and marginal utility.
- Demonstrate the relationship between total and marginal utility.
- Analyze how marginal utility determines the shape of the total utility curve.
- Apply the concepts to real-world decision-making.
Instructional Materials:
- Utility schedules
- Graph paper
- Rulers and pencils
- Sample data tables
- Projector or visual aid with plotted TU/MU curves
Anticipation (Warm-Up):
Ask: “What happens to your total satisfaction as you keep watching your favorite movie episodes back-to-back?”
Use this to introduce how marginal utility influences total utility.
Building Knowledge (Main Lesson):
- Total Utility (TU):
Total satisfaction received from consuming a certain number of goods or services. - Marginal Utility (MU):
Change in total utility that results from consuming one more unit of a good.
- Relationship:
- When MU is positive, TU increases.
- When MU is zero, TU is at maximum.
- When MU becomes negative, TU starts to decrease.
- Sample Utility Schedule and Graph:
|
Quantity of Water (glasses) |
Total Utility (TU) |
Marginal Utility (MU) |
|
1 |
12 |
12 |
|
2 |
22 |
10 |
|
3 |
30 |
8 |
|
4 |
36 |
6 |
|
5 |
40 |
4 |
|
6 |
42 |
2 |
|
7 |
42 |
0 |
|
8 |
40 |
-2 |
Interpretation:
- TU rises as long as MU is positive.
- TU is highest when MU is zero.
- TU falls when MU is negative.
Activities:
Group Work:
- Plot TU and MU graphs from the sample schedule.
- Identify and label where TU is maximum and MU is zero.
Class Discussion:
- What causes the decrease in MU?
- Why does TU flatten out?
Experiment (Simulation Exercise):
Title: Tracking Utility with Apple Slices
Materials: Apple slices, rating sheets
Procedure:
- Learners consume slices one by one, rating each for satisfaction.
- Use ratings to draw TU and MU curves.
- Discuss how results reflect the theory.
Assessment Questions:
- Define marginal utility and total utility.
- Using the TU and MU data below, calculate the missing values:
|
Q |
TU |
MU |
|
1 |
15 |
— |
|
2 |
27 |
? |
|
3 |
36 |
? |
|
4 |
42 |
? |
- At what point is TU maximized in the data? Why?
Homework:
- Interview 3 people about a favorite food or activity. Ask how their satisfaction changes after repeated consumption. Record and summarize.
- Write an essay on “How marginal utility affects my pocket money spending.”
Expanded Notes:
- TU and MU are related mathematically and behaviorally.
- Real-world decisions (like buying more airtime, food, or streaming data) follow this pattern.
- This relationship helps firms and consumers make rational choices.
Differentiation:
- Graphing for visual learners
- Simulation for kinesthetic learners
- Data interpretation for logical/mathematical learners
Teacher’s Reflection:
- Did learners understand the mathematical connection between TU and MU?
- Were they able to apply the theory to real-life decisions?
- Were graphs interpreted correctly?