Title: Determinants of Demand

Objective: By the end of this lesson, students will be able to understand the determinants of demand and how they influence consumer behavior.

Duration: 1 hour

Materials: - Whiteboard or blackboard - Markers or chalk - Handouts with examples of determinants of demand - Worksheets for practice

Lesson Plan:

Introduction (5 minutes): 1. Greet the students and introduce the topic of determinants of demand. 2. Ask the students if they are familiar with the concept of demand and what factors they think influence it. 3. Explain that determinants of demand are the factors that affect the quantity of a good or service that consumers are willing and able to buy at a given price.

Main Content (40 minutes):

I. Price of the Product (10 minutes): 1. Write “Price of the Product” on the board. 2. Explain that price is the most significant determinant of demand. 3. Discuss the concept of the law of demand, which states that as the price of a product increases, the quantity demanded decreases, and vice versa. 4. Provide examples and ask students to identify how changes in price affect demand.

II. Income (10 minutes): 1. Write “Income” on the board. 2. Explain that income is another important determinant of demand. 3. Discuss the difference between normal goods (demand increases as income increases) and inferior goods (demand decreases as income increases). 4. Provide examples and ask students to identify how changes in income affect demand.

III. Consumer Preferences (10 minutes): 1. Write “Consumer Preferences” on the board. 2. Explain that consumer preferences, such as tastes and preferences, can significantly influence demand. 3. Discuss how changes in fashion trends, advertising, and personal preferences can impact consumer behavior. 4. Provide examples and ask students to identify how changes in consumer preferences affect demand.

IV. Price of Related Goods (10 minutes): 1. Write “Price of Related Goods” on the board. 2. Explain that the prices of related goods, such as substitutes and complements, can affect demand. 3. Discuss the concept of substitutes (goods that can be used in place of each other) and complements (goods that are consumed together). 4. Provide examples and ask students to identify how changes in the prices of related goods affect demand.

Conclusion (10 minutes): 1. Summarize the main points discussed during the lesson. 2. Distribute handouts with examples of determinants of demand for students to review. 3. Assign worksheets for practice, either as homework or in-class activities. 4. Answer any questions the students may have.

Note: The duration of each section can be adjusted based on the pace of the class and the level of understanding.