Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: consequences of price discrimination
Learning Objective/s:
  • Describe the three types of price discrimination and the conditions firms need to apply them.
  • Explain how each type affects consumer surplus, producer surplus and dead‑weight loss.
  • Analyse the distributional and equity implications of price discrimination in real‑world contexts.
  • Evaluate when price discrimination improves overall welfare and when it reduces it.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed handouts with diagrams and worksheets
  • Calculators
  • Case‑study cards (airline, utilities, software)
  • Student response clickers (optional)
 Introduction:

Imagine buying the same airline ticket at two very different prices – why does this happen? Students should already know basic monopoly pricing and the concepts of consumer and producer surplus. By the end of the lesson they will be able to identify the types of price discrimination, assess their welfare impacts and produce a brief evaluation.
Lesson Structure:
  1. Do‑now (5') – Quick written task: list everyday examples where the same product costs different prices.
  2. Mini‑lecture (10') – Define price discrimination, outline the three types and the required conditions using slides.
  3. Guided practice (15') – Pairs complete a worksheet analysing a first‑degree discrimination scenario and calculate the change in surplus (calculator required).
  4. Group activity (10') – On the whiteboard, draw demand and marginal‑revenue curves for two consumer groups (elastic & inelastic) and identify optimal third‑degree prices.
  5. Case‑study discussion (10') – Examine airline and utility examples; debate equity implications.
  6. Check for understanding (5') – Exit ticket: state one condition for price discrimination and one welfare effect of the type you find most impactful.
Conclusion:

We revisited the three forms of price discrimination, their conditions and how they reshape consumer and producer surplus. Students now submit an exit ticket summarising a key condition and its welfare implication, and they will complete a short essay at home evaluating price discrimination in an industry of their choice.