Lesson Plan

• Define a mixed economic system and explain what an indirect tax is.
• Draw and correctly label a supply‑and‑demand diagram showing the effect of an indirect tax, identifying consumer surplus, producer surplus, tax revenue and dead‑weight loss.
• Analyse the main advantages and disadvantages of indirect taxation.
• Evaluate how indirect taxes influence welfare outcomes in a mixed economy.
• Calculate simple tax‑revenue and dead‑weight‑loss figures from given data.

• Projector and screen
• Whiteboard and markers
• Printed worksheets with blank diagram templates
• Calculators for each student
• Laptop with slide presentation
• Sample price tags/VAT receipts for illustration

Begin with a quick question: “What taxes do you see on everyday items like a soda or a cinema ticket?” This connects students’ lived experience to the concept of indirect taxes. Review the basic supply‑and‑demand model they have already mastered. Explain that by the end of the lesson they will be able to illustrate and interpret how such taxes reshape market outcomes.

1. Do‑now (5’) – short quiz on market vs. command economies to activate prior knowledge.
2. Mini‑lecture (10’) – definitions of mixed economic system and indirect tax; why governments use them.
3. Diagram activity (15’) – students draw a supply‑and‑demand graph showing a tax, label E, Eₜ, tax‑revenue rectangle and dead‑weight loss triangle.
4. Interpretation discussion (10’) – in pairs, explain how the tax shifts supply, affects price, quantity, and welfare; share findings.
5. Advantages & disadvantages (10’) – groups fill a T‑chart comparing pros and cons of indirect taxation, then present key points.
6. Synthesis (5’) – teacher summarises the link between mixed economies and the use of indirect taxes.
7. Exit ticket (5’) – each student writes one sentence describing the main welfare impact of an indirect tax.

Recap the definitions, the diagram interpretation, and the key advantages and disadvantages discussed. Collect the exit tickets to gauge understanding and assign a brief homework: research a real‑world indirect tax (e.g., VAT on electronics) and calculate the estimated tax revenue and dead‑weight loss using provided formulas.