| Lesson Plan |
| Grade: |
Date: 25/02/2026 |
| Subject: Economics |
| Lesson Topic: nature and definition of demerit goods: over-consumption as a result of imperfect information in the market |
Learning Objective/s:
- Describe the characteristics of demerit goods and why they generate negative externalities.
- Explain how imperfect information leads to over‑consumption of demerit goods.
- Analyse the impact of government interventions (taxes, regulation, information campaigns) on market outcomes for demerit goods.
- Evaluate the efficiency and equity implications of different policy tools.
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Materials Needed:
- Projector and screen for diagrams
- PowerPoint slides or PDF handout summarising demerit‑good concepts
- Worksheet with graph‑drawing exercise
- Sample advertisement images for discussion
- Whiteboard and markers
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Introduction:
Begin with a quick poll: “Which products do you think are harmful but still popular?” Use responses to link prior knowledge of externalities and highlight the lesson’s focus on information failures and over‑consumption. State that by the end of class students will be able to identify demerit goods, explain why markets over‑consume them, and assess policy responses.
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Lesson Structure:
- Do‑now (5'): Students list three everyday products they consider “bad” and justify their choices.
- Mini‑lecture (10'): Define demerit goods, discuss negative externalities and imperfect information, show the MPB‑MPC vs SMC diagram.
- Guided practice (12'): In pairs, students complete a worksheet drawing the welfare‑loss diagram and calculate the dead‑weight loss using given numbers.
- Case‑study analysis (10'): Examine a real‑world advertisement (e.g., fast‑food) and identify information‑asymmetry tactics.
- Policy debate (10'): Groups role‑play as government, industry, and consumers to propose a tax, regulation, or information campaign; each presents arguments.
- Check for understanding (3'): Quick quiz via Kahoot/exit ticket with three multiple‑choice questions.
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Conclusion:
Recap the key points: demerit goods are over‑consumed due to information gaps and external costs, and government tools aim to align private and social incentives. Collect exit tickets asking students to state one policy they think is most effective and why. Assign homework: write a short paragraph evaluating a recent tax on sugary drinks in your country.
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