Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: equi-marginal principle
Learning Objective/s:
  • Describe total and marginal utility and the law of diminishing marginal utility.
  • Explain the equi‑marginal principle and its formal condition for utility maximisation.
  • Apply the principle to allocate a fixed budget across two goods using a numerical example.
  • Interpret a budget‑line/indifference‑curve diagram that illustrates the optimal bundle.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck with formulas and example table
  • Printed worksheet with the numerical problem
  • Calculator for each student
  • Whiteboard markers and erasers
 Introduction:
Begin with a quick poll: “When you have £20 to spend, how do you decide what to buy?” Connect this to recent work on utility and diminishing marginal utility. Explain that today they will learn a systematic rule – the equi‑marginal principle – to maximise satisfaction, and the success criteria are to state the condition and correctly allocate a budget in a problem.
Lesson Structure:
  1. Do‑now (5'): Students answer the poll and list factors influencing purchase decisions; teacher collects responses. (Check understanding)
  2. Mini‑lecture (10'): Review total/marginal utility and introduce the equi‑marginal condition with formula; ask concept questions.
  3. Guided practice (15'): Walk through the numerical example, calculating MU/P for each good and deciding allocations; students fill worksheet.
  4. Independent activity (12'): Students work on a similar budget problem with different prices; teacher circulates and provides feedback.
  5. Diagram discussion (8'): Show indifference‑curve diagram; students identify the tangency point and relate it to MU/P equality.
  6. Exit ticket (5'): Write the formal condition for utility maximisation and one sentence explaining why it matters.
Conclusion:
Summarise that utility is maximised when the marginal utility per pound is equal across all goods, and that the equi‑marginal principle provides a step‑by‑step allocation method. For the exit ticket, students record the condition and a brief justification. Homework: complete a worksheet with a three‑good budget allocation problem.