Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: in a kinked demand curve
Learning Objective/s:
  • Describe the shape and key features of the kinked demand curve in oligopolistic markets.
  • Explain how price rigidity under a kinked demand curve influences firm objectives such as profit, revenue, and market‑share.
  • Analyse typical pricing and non‑price policies firms adopt when facing a kinked demand curve.
  • Apply the concept to evaluate why firms may prioritize investment and innovation over price competition.
Materials Needed:
  • Projector and slide deck
  • Whiteboard and markers
  • Printed handout of the kinked‑demand diagram
  • Worksheet with case questions
  • Calculator (optional)
  • Sticky notes for the opening poll
 Introduction:
Begin with a quick poll: “When a competitor lowers its price, what would you do?” Connect this to prior study of oligopoly price behaviour. Explain that today’s success criteria are to sketch the kinked demand curve, articulate its impact on pricing policy, and evaluate alternative firm objectives.
Lesson Structure:
  1. Do‑now (5’) – Students write their poll responses on sticky notes and share briefly.
  2. Mini‑lecture (10’) – Present key features of the kinked demand curve and the MR gap using slides.
  3. Guided diagram sketch (10’) – Students draw the curve on the handout; teacher circulates to check understanding.
  4. Table analysis activity (15’) – In groups, examine the objectives table, identify rationales and typical policy responses, then report findings.
  5. Case application (10’) – Small scenario where a firm chooses between advertising or a price cut; groups decide and justify their choice.
  6. Quick quiz / exit ticket (5’) – One‑sentence answer: why is price “sticky” under a kinked demand curve?
Conclusion:
Recap the reasons for price stability and the shift to non‑price competition in oligopolies. Collect exit tickets and highlight how the MR gap creates a range of marginal costs where price does not change. For homework, ask students to research a real‑world oligopoly firm and write a short paragraph describing its non‑price strategies (e.g., advertising, product differentiation, loyalty programmes).