Lesson Plan

• Describe how the marginal productivity of labour determines labour demand in a perfectly competitive market.
• Explain how the intersection of labour demand and supply establishes the equilibrium wage (w*) and employment (L*).
• Analyse the impact of shifts in labour demand or supply on equilibrium wage and employment.
• Evaluate the efficiency and equity implications of common government interventions (minimum wage, labour tax, subsidies, training).
• Apply the concepts by constructing and interpreting labour market diagrams.

• Projector and screen
• Whiteboard and markers
• Printed handouts with blank labour‑demand and labour‑supply graphs
• Calculator worksheets for VMP calculations
• Case‑study cards on minimum wage, tax and subsidy policies
• Exit‑ticket slips

Begin with a headline about a recent minimum‑wage debate to hook interest. Ask students what they already know about how wages are set in a market. Clarify that today they will uncover the mechanics of equilibrium wages and test how policy can move the market, with success measured by their ability to draw and explain the diagrams.

1. Do‑Now (5') – Quick written response: “If a firm’s product price rises, what happens to the wage it pays?” Collect answers.
2. Mini‑lecture (10') – Explain labour demand (VMP = P×MPL) and labour supply concepts; introduce equilibrium condition w* = VMP = supply wage.
3. Diagram Activity (10') – Students plot demand and supply curves on handouts, locate w* and L*, and label axes.
4. Shift Analysis (10') – In pairs, use the provided table to predict how changes (e.g., tech improvement, population growth) shift curves and affect w and L; share findings.
5. Government Intervention Case Study (10') – Groups examine a policy card (minimum wage, tax, subsidy, training) and sketch the new equilibrium, discussing equity vs. efficiency.
6. Check for Understanding (5') – Short quiz (multiple‑choice/short answer) on key concepts.

Summarise how the intersection of labour demand and supply sets the market wage and how policy can shift that outcome. Ask each student to write one sentence on the board describing one trade‑off of a policy they examined (exit ticket). For homework, assign the textbook section on labour market interventions and a worksheet to complete additional diagram sketches.