| Lesson Plan |
| Grade: |
Date: 03/03/2026 |
| 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.
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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
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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.
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Lesson Structure:
- Do‑now (5'): Students answer the poll and list factors influencing purchase decisions; teacher collects responses. (Check understanding)
- Mini‑lecture (10'): Review total/marginal utility and introduce the equi‑marginal condition with formula; ask concept questions.
- Guided practice (15'): Walk through the numerical example, calculating MU/P for each good and deciding allocations; students fill worksheet.
- Independent activity (12'): Students work on a similar budget problem with different prices; teacher circulates and provides feedback.
- Diagram discussion (8'): Show indifference‑curve diagram; students identify the tangency point and relate it to MU/P equality.
- Exit ticket (5'): Write the formal condition for utility maximisation and one sentence explaining why it matters.
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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.
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