ECONOMICS LESSON NOTE
SUBJECT:
Economics
CLASS:
SS1
TERM:
First Term
WEEK:
Week 5
TOPIC:
Theory of Demand
PERIOD:
40 Minutes
LESSON OBJECTIVES
At the end of the lesson, students should be able to:
- Define demand.
- Explain the law of demand.
- Identify factors affecting demand.
- Draw and interpret a demand curve.
- Explain demand schedule.
ENTRY BEHAVIOUR
Students are familiar with buying goods in the market and noticing price changes affect how much they buy.
TEACHING AND LEARNING MATERIALS
- Whiteboard
- Marker/Chalk
- Economics textbook
- Graph sheets
- Charts showing demand curve
REFERENCE BOOKS
- Comprehensive Economics for Senior Secondary Schools
- Essential Economics by C.E. Ande
- New System Economics
CONTENT
MEANING OF DEMAND
Demand is the quantity of a commodity that consumers are willing and able to buy at a given price over a period of time.
Demand involves two conditions:
- Willingness to buy
- Ability to pay
DEMAND SCHEDULE
A demand schedule is a table showing the relationship between price and quantity demanded.
Example:
| Price (₦) |
Quantity Demanded |
| 10 |
50 units |
| 20 |
40 units |
| 30 |
30 units |
| 40 |
20 units |
| 50 |
10 units |
LAW OF DEMAND
The law of demand states that:
“The higher the price, the lower the quantity demanded, and the lower the price, the higher the quantity demanded, ceteris paribus.”
Explanation
- When price increases, consumers buy less.
- When price decreases, consumers buy more.
- This shows an inverse relationship between price and demand.
DEMAND CURVE
A demand curve is a graphical representation of the relationship between price and quantity demanded.
- It slopes downward from left to right.
- It shows inverse relationship between price and quantity demanded.
Characteristics of Demand Curve
- Downward sloping
- From left to right
- Shows inverse relationship between price and quantity
FACTORS AFFECTING DEMAND (DETERMINANTS OF DEMAND)
- Price of the commodity
- Income of consumers
- Price of related goods (substitutes and complements)
- Taste and preference
- Population
- Government policy
- Seasons and weather
Explanation:
1. Income:
Higher income increases demand for normal goods.
2. Price of related goods:
- Substitute goods: tea and coffee
- Complementary goods: bread and butter
MOVEMENT AND SHIFT IN DEMAND
1. Movement along the demand curve:
Caused by change in price.
2. Shift in demand curve:
Caused by other factors like income or taste.
IMPORTANCE OF DEMAND
- Helps producers determine quantity to produce.
- Helps in pricing of goods.
- Guides production decisions.
- Helps government in economic planning.
TEACHER’S ACTIVITIES
- Explains meaning of demand.
- Draws and explains demand curve.
- Gives real-life examples of demand changes.
- Guides students in drawing demand schedule.
STUDENTS’ ACTIVITIES
- Participate in discussion.
- Copy demand schedule.
- Draw demand curve.
- Answer questions.
EVALUATION QUESTIONS
- Define demand.
- State the law of demand.
- Draw a demand schedule.
- Mention four factors affecting demand.
- Differentiate between movement and shift in demand.
ASSIGNMENT
- Explain the law of demand.
- List five determinants of demand.
- Draw a demand curve using a simple schedule.
BOARD SUMMARY
- Demand is willingness and ability to buy goods.
- Demand decreases when price increases.
- Demand curve slopes downward.
- Demand is influenced by several factors.
CONCLUSION
The teacher reviews the lesson by asking students questions and ensuring they can interpret a simple demand schedule and curve.
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