Lesson Plan

• Describe how changes in income, prices, taxes, subsidies and real wages affect the consumer’s budget line.
• Explain why income changes shift the line parallel while price changes rotate it.
• Apply the budget‑line equation to illustrate each type of shift with a numerical example.

• Projector and screen
• Whiteboard and markers
• Printed handout of the budget‑line diagram
• Calculators
• Worksheet with practice shifts and worked examples

Begin with a quick poll: “If your weekly allowance doubled, what would you buy more of?” Connect responses to the idea of a budget line. Review the budget‑line equation \(p_X X + p_Y Y = I\) and state that today students will identify what moves this line. Success will be measured by correctly sketching and labeling each shift.

1. Do‑now (5'): Students complete a short “budget‑line recall” worksheet.
2. Recap of the budget line (10'): Teacher revisits the equation and slope, using the whiteboard.
3. Explain the five causes of shifts (15'): Mini‑lecture with diagram slides – income, price of X, price of Y, taxes/subsidies, real‑wage changes.
4. Worked example (10'): Walk through the £120 income scenario and a price‑change scenario, sketching both shifts.
5. Guided practice (15'): Students work in pairs on the worksheet, identifying the cause and drawing the resulting shift for several cases.
6. Check for understanding (5'): Quick “exit‑ticket” question – “What type of shift occurs when the price of Good Y falls?”

Summarise that income changes move the line parallel, while price‑related changes rotate it, and that taxes/subsidies are treated as price changes. Collect the exit‑ticket and assign the worksheet’s remaining problems for homework, encouraging students to create their own real‑world examples.