Lesson Plan

• Describe why governments intervene in markets to correct failures.
• Explain how the main regulatory tools (price controls, taxes/subsidies, quotas, standards, competition policy) influence supply, demand and welfare.
• Compare the efficiency and equity outcomes of regulation versus deregulation.
• Evaluate real‑world examples and decide when regulation or deregulation is appropriate.

• Projector and screen
• Whiteboard and markers
• Printed handouts with diagrams of price ceilings/floors and carbon tax
• Worksheet containing case studies (rent control, airline deregulation)
• Calculators (optional)
• Exit‑ticket slips

Begin by asking students to name a recent news story about a government‑set price limit. Connect this to prior learning on market failure and externalities. Explain that today they will identify the tools governments use, compare regulation with deregulation, and judge when each is appropriate.

1. Do‑now (5') – Quick write: “What product’s price was changed by the government and why?”
2. Mini‑lecture (10') – Reasons for intervention; overview of regulatory tools (price controls, taxes/subsidies, quotas, standards, competition policy).
3. Group activity (15') – Analyse rent‑control case using diagram; complete worksheet questions on welfare effects.
4. Deregulation discussion (10') – Review airline deregulation example; debate pros and cons.
5. Comparative table exercise (10') – Fill in a table contrasting regulation vs. deregulation on efficiency, equity, admin cost, innovation.
6. Check for understanding (5') – Exit ticket: one sentence stating when regulation is preferable to deregulation.

Summarise how regulation can correct market failures but may create new distortions, while deregulation can boost efficiency but risk equity issues. Collect exit tickets and assign homework: research a local regulation, describe its purpose, and suggest a possible deregulation improvement.