Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: price leadership
Learning Objective/s:
  • Describe the concept of price leadership and differentiate its four types.
  • Explain the conditions that allow price leadership to emerge in oligopolistic markets.
  • Analyse the economic rationale, advantages and disadvantages of price leadership using the kinked‑demand model.
  • Evaluate the competition‑policy implications of price leadership.
  • Apply knowledge by identifying real‑world examples of price leadership.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck summarising price‑leadership concepts
  • Handout with comparative table of price‑leadership types
  • Case‑study worksheet (e.g., UK supermarket industry)
  • Whiteboard markers and chart paper
  • Calculator (optional for profit calculations)
 Introduction:
Begin with a quick poll: “When you shop, have you noticed prices changing together across stores?” Connect this to prior learning on oligopoly and the kinked‑demand curve. State that by the end of the lesson students will be able to identify and critique price‑leadership behaviour.
Lesson Structure:
  1. Do‑now (5’) – Students answer the poll and share observations.
  2. Mini‑lecture (10’) – Define price leadership and present the four types with brief examples.
  3. Guided analysis (12’) – Examine the comparative table; students complete a worksheet matching types to conditions, advantages and regulatory concerns.
  4. Case study (15’) – In groups, analyse the Tesco price‑leadership example and calculate profit impact using π = (Pₗ – MC) × Q.
  5. Class discussion (8’) – Discuss advantages, disadvantages and policy implications; teacher checks understanding with targeted questions.
  6. Summary & reflection (5’) – Recap key points; exit ticket: write one advantage and one policy risk of price leadership.
Conclusion:
Recap that price leadership can stabilise oligopolistic markets but may raise antitrust concerns. Collect exit tickets and assign homework: find a recent news article that illustrates price leadership and write a brief analysis of its economic and policy implications.