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Subject: Economics
Semester: 1
Period: 1
Week: 1
School Name:
Teacher’s Name:
Subject: Economics
Grade Level: Grade 11
Week & Period: Week 1, Period I
Date:
Topic: Price Determination
Sub-topic: Determination of Price by Supply and Demand; Equilibrium Price and Quantity; Shortage and Surplus; Changes in Equilibrium
LEARNING OBJECTIVES
By the end of the lesson, learners should be able to:
- Define demand, supply, and price.
- Identify the interaction between demand and supply in determining market price.
- Explain the concepts of equilibrium price and equilibrium quantity.
- Analyze situations of shortage and surplus.
- Evaluate how changes in demand and supply affect equilibrium.
INSTRUCTIONAL MATERIALS
- Whiteboard/Marker
- Graph sheets
- Demand and supply curves
- Price tags
- Diagrams of market equilibrium
- Simulation tools (optional)
ANTICIPATION (Warm-Up)
Ask students:
“What do you think determines the price of rice in the market?”
Then prompt them with:
“If more people want it but there’s little available, what happens?”
MAIN LESSON: BUILDING KNOWLEDGE
Definition of Terms:
- Demand: The quantity of a good that buyers are willing and able to purchase at various prices.
- Supply: The quantity of a good that sellers are willing and able to offer at different prices.
- Price: The amount of money exchanged for a good or service.
- Market Equilibrium: The price and quantity at which the quantity demanded equals quantity supplied.
EXPLANATION: INTERACTION OF DEMAND AND SUPPLY
- Demand and supply intersect at a point called equilibrium.
- Equilibrium Price: The price at which demand equals supply.
- Equilibrium Quantity: The quantity exchanged at the equilibrium price.
SHORTAGE AND SURPLUS
- Shortage: Occurs when demand is greater than supply at a given price.
- Surplus: Occurs when supply is greater than demand at a given price.
CHANGES IN EQUILIBRIUM
- Increase in demand shifts demand curve rightward → price & quantity increase.
- Decrease in supply shifts supply curve leftward → price increases, quantity decreases.
ILLUSTRATIVE EXAMPLE
|
Price (USD) |
Quantity Demanded |
Quantity Supplied |
|
5 |
20 |
5 |
|
10 |
15 |
10 |
|
15 |
10 |
15 |
|
20 |
5 |
20 |
- At $15, quantity demanded = quantity supplied = 10 → equilibrium price
GRAPHICAL REPRESENTATION
- Draw demand and supply curves on the board.
- Mark the equilibrium point where they intersect.
- Indicate zones of shortage (below equilibrium) and surplus (above equilibrium).
CLASS ACTIVITY
Simulation Game:
- Use pretend money and price tags.
- Assign some learners as buyers and others as sellers.
- Adjust availability of goods to simulate demand and supply shifts.
- Observe and record how prices change.
ASSESSMENT (Classwork/Individual)
- Define equilibrium price and equilibrium quantity.
- What happens when quantity demanded is greater than quantity supplied?
- If demand increases and supply remains the same, what happens to price?
- Use the table below to find the equilibrium price and quantity.
- Draw a demand and supply curve for a market of your choice.
HOMEWORK
- Interview a trader in your local market and ask what affects the price of goods the most.
- Write one paragraph to explain how changes in weather could affect equilibrium price for agricultural products.
TEACHER’S REFLECTION
- Were students able to grasp the dynamic relationship between demand, supply, and price?
- Did the simulation help enhance understanding?
- What areas require reinforcement in Week 2?