Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: relationships between different markets: derived demand
Learning Objective/s:
  • Describe the concept of derived demand and its link between product and factor markets.
  • Explain how changes in product price, technology, and related factor prices shift the derived demand curve.
  • Calculate and interpret the elasticity of derived demand for a factor of production.
  • Analyse real‑world examples of derived‑demand shifts in labour and capital markets.
  • Evaluate the impact of technological change on factor demand using diagrams.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck with derived‑demand diagrams
  • Printed worksheet with practice questions
  • Graph paper, calculators, and markers
  • Sample data tables for product and factor prices
  • Whiteboard and markers for whole‑class work
 Introduction:
Begin with a quick poll: “If the price of smartphones rises, what happens to the demand for factory workers?” Connect this to students’ prior knowledge of product markets, then outline that today they will explore how such product‑market changes create demand for factors. State that success will be shown by correctly drawing and explaining a shift in a derived‑demand curve.
Lesson Structure:
  1. Do‑now (5’) – short quiz on product vs. factor markets (individual).
  2. Mini‑lecture (10’) – definition of derived demand, relationship between product and factor markets.
  3. Diagram demonstration (10’) – draw the derived‑demand curve and show a right‑ward shift when product price rises.
  4. Group case study (15’) – analyse the automobile labour example; each group sketches the shift and explains the determinant.
  5. Elasticity discussion (10’) – introduce the elasticity formula, work through a numeric example.
  6. Whole‑class synthesis (5’) – recap determinants of derived demand and elasticity.
  7. Exit ticket (5’) – write one sentence describing how a new technology would affect the derived demand for a factor.
Conclusion:
Recap the key link: factor demand is derived from product demand and shifts with product‑price, technology, and related factor prices. Collect exit tickets to gauge understanding, then assign homework: complete the worksheet’s two diagram questions and a short answer on the elasticity of derived demand for a chosen factor.